When last we checked in...
In part three of the Grading Experiment, FedEx shipping was chosen to mail the books to CGC. The books we shipped had a declared value of $4,100. I was shipping my legal clients' books for this experiment so I wanted to PROPERLY insure these books. I informed the FedEx employee that collectibles were being sent to be graded.
The declared value for each book was also told to the clerk. This was done so that proper insurance could be purchased for those books. It was stressed that I needed these items insured for their full value in the event anything happened to them in transit. The insurance needed to pay me the full declared value of the books so I could make the owners whole in the event of loss or damage. The cost to ship and "insure" the books using FedEx was $102.56. That fee was paid by me.
GoCollect readers deserve the best
Any good experiment requires controlling as many variables as possible. As a result, a second and more expensive lot of books was sent to CGC to be graded. The three books sent were Incredible Hulk #181, Giant Size X-Men #1, and Our Army at War #83, which contains one of the first argued appearances of Sgt. Rock. These books had a declared value of over $12,000.
I again covered the cost of this mailing because it was needed for the experiment. The additional mailing was necessary because many of our readers have high-value books they want to send in to be graded. We wanted to simulate those submissions as well, and I am glad we did.
Not Fort Knox
The global economy has impacted FedEx. FedEx is parking planes to save money. The company is also facing security issues. Last year, it was reported that an employee dumped packages in a ravine in Alabama instead of delivering them to their intended destination. More recently, a FedEx driver in Michigan was accused of stealing $96,000 worth of inventory intended to be delivered to Foot Locker.
The thought of my client's books being lost or damaged in transit was again on my mind. Insuring them against risk of loss was essential. I again used FedEx, even with those negative events, because the first shipment arrived on time and with no incidents. The same FedEx branch was used, but this time we were told something shocking.
Shipper beware
A FedEx manager assisted me with the shipment. Every part of the first process was repeated on this trip. When it came time to obtain additional insurance we were told there was a big problem with our shipment. FedEx only insures collectibles being shipped up to $1000 per instance. The manager explained this was per SHIPMENT and not per item.
That means that if we shipped the three books with a declared value of $12,200, the only recourse we would have if the items were lost or damaged in shipment would be a one-time payment of UP TO $1000. Even then, I would still have to prove the items were worth $1000 to get that money.
Money for nothing
I told the manager of my prior shipment and how additional insurance for $4,100 was purchased. She stated that any additional claims beyond the $1000 would not be paid out even with the additional insurance purchased. Furthermore, these additional losses would have to be claimed under a homeowner's insurance policy if possible. The manager said it was my duty to ask and that the fact I paid for a service I could not benefit from was not the fault of the clerk. The manager was very professional and I actually appreciated their advice on the topic.
Calling Jake from State Farm...
Many homeowner insurance policies may not cover shipping losses. Additional steps needed to be taken BEFORE something went wrong. This meant that, in the event something happened to my client's books, they MIGHT receive a lump sum of $1,000 to be divided up for each to cover those lost iconic books. I still needed to get the books graded and wondered how I could get these books shipped without putting them under a separate insurance policy.
Road trip?
I was extremely worried about risk of loss with those three books. Another method was needed to send the books to Florida that did not include me physically driving to the state. I went to a UPS store and they indicated that the declared value of the books could be covered if their Pack & Ship Guarantee was used. If that method was not used, my books would not be fully insured because they were classified for shipping insurance as collectibles. This meant the UPS employees would pack and ship items to CGC even though the item was already boxed and addressed to CGC. The clerk said this would change the risk of loss from myself to UPS.
The price of a priceless lesson
The price I had to pay for this experimental shipping method was ONLY $533.95! That fee included packing material and postage fees, but was almost 5 times the cost of our first mailing from FedEx. It should be noted that the UPS price for the first shipment was close to the FedEx price. I used the Pack & Ship service because the experiment needed to proceed but that was one expensive shipment. The lesson learned was priceless.
Do you love red tape and a lot of forms?
Most people assume that if anything is shipped, the mailing company will cover the cost of the damaged goods. That is not the case. The prices of collectibles are highly volatile and greatly impacted by condition. Companies do not want to make a payout on claims that may have inflated prices. As a result, they limit their exposure when customers want to pack their own orders. The policy will be enforced even if an employee says something to the contrary. The claim process may also require documentation of the condition of a book and its purchase price, not the sold price.
Duty to know
If a person is shipping any books and wants to be protected, they MUST talk with their shipping company. This will allow the hobbyist to determine if the items shipped are fully insured from the risk of loss. Many of the items that are shipped may not be fully insured. It is taken for granted that books will arrive free from damage if they arrive at all. Collectibles are items that shippers scrutinize when it comes to insurance claims. THIS IS NOT LEGAL ADVICE, BUT EVERYONE SHOULD READ THE FINE PRINT WHEN IT COMES TO SHIPPING COLLECTIBLES.
Some of my best friends are attorneys but...
Attorneys have drafted that language to protect their clients. That is the reason those sections are so long, but not knowing what is in these lengthy contracts is no excuse for you as you work under the terms of the agreement. As always, it is better to realize your rights one day too early rather than one day too late. Losing a prized comic book in transit may be difficult, but receiving little to no money to make one whole would be devastating.
“To me, a lawyer is basically the person that knows the rules of the country. We’re all throwing the dice, playing the game, moving our pieces around the board, but if there is a problem the lawyer is the only person who has read the inside of the top of the box.” – Jerry Seinfeld
