U.S. Company Insurance Claim Case
Stainless steel shipped CIF under an all-risks policy arrived damaged at Baltimore; the insurer initially denied coverage. SuitWin China Law Firm negotiated recovery of $280,000.
Facts
In 2021, a U.S. company entered into a sales contract with a Dalian-based Chinese company to purchase a batch of stainless steel materials. The agreed trade term was CIF major U.S. port.
After contract execution, the Dalian company entrusted a shipping company to transport the goods. The shipping company issued a bill of lading specifying the shipper as the Dalian company, the consignee as the U.S. company, the port of loading as Dalian, and the port of discharge as Baltimore, U.S.
Upon arrival in Baltimore, the container and its contents were found severely damaged, prompting the consignee (U.S. company) to refuse acceptance.
Coverage dispute
The shipment was insured by a Dalian-based insurer under a policy covering All Risks, War Risks, and Strike Risks, with a deductible of 0.03% of the loss amount. After the damage occurred, the insurer refused to pay the claim.
Outcome
The U.S. company retained SuitWin China Law Firm to handle the case. After multiple negotiations with the insurer, the insurance company ultimately agreed to compensate $280,000.