Insurance for your package is more important than you think…
Samets
Posts: 364 ✭✭✭✭
I was reading an aviation story on the November crash of a UPS MD-11 freighter and started to wonder if PCGS’ use of FedEx as the only choice for outbound packages has potential for total loss of a package.
In my research, UPS is sending all 9% (26 planes) of their fleet to a permanent retirement earlier than expected and will no longer operate this model. Meanwhile, FedEx is claiming for the moment that it will patch up its MD-11s and get them back into the air once the FAA lifts its post-crash grounding order. FedEx has 58 (8.5% of their fleet) MD-11 planes in its fleet. Although the number doesn’t sound high, on further research FedEx operates 316 “feeder planes” operated by “partners” that are typically smaller regional routes and 382 company owned planes for the main routes between hubs bringing the total closer to 16% of the fleet.
Based on my research, I would highly recommend that you don’t short yourself on insurance for your coins. I looked over the last few submissions and realized that I threw in costs that may not reflect the true replacement values.
Your thoughts?
Comments
Just curious, when an outbound package from PCGS is lost, who writes the insurance check? Does PCGS send you a check for the amount you specified on your submission form? If so, do they do so promptly?
Or in the example cited by the OP, does Fedex write the check, or is it some other 3rd-party that you have to deal with?
PCGS should write the check and then it's up to them to go after FedEx.
Worry is the interest you pay on a debt you may not owe.
"Paper money eventually returns to its intrinsic value---zero."----Voltaire
"Everything you say should be true, but not everything true should be said."----Voltaire
Or perhaps they go to their private insurer.
Mark Feld* of Heritage Auctions*Unless otherwise noted, my posts here represent my personal opinions.
I don't know for a fact how PCGS does it, but I've dealt with enough large companies and majority are self insured.
It's a game of numbers and for most it's easier to pay out of pocket rather than pay the shipper or a 3rd party.
PCGS only has the following for loss:
Customer's coin was lost or damaged while in PCGS possession, Customer will be compensated based upon the fair market value of the coin as determined by PCGS standard procedures which may include filing a claim with our insurance carrier. The declared value you stated on the front of this form is for estimating the insurance coverage only, and the fair market value of the coin may be less than your declared value. IN NO EVENT SHALL THE TOTAL LIABILITY EXCEED THE DECLARED VALUE OF THE COIN. Such compensation shall be Customer's exclusive remedy for any loss or damage, and is subject to Customer irrevocably releasing and discharging PCGS and its affiliates from any liability for loss or damage to the item whatsoever, regardless of PCGS's actions or omissions.
To me, above is for loss in PCGS' possession. Nothing about insurance claims after the package has left their possession.
Long story short: It can be less, but never more. So it's best to inflate your numbers.
Wow. If true, seems like a big loophole.