Shipping Insurance Terms and Conditions

LugLess offers its customers and potential customers (“Customers”) the opportunity to include their eligible shipments of cargo under a policy of insurance issued to and maintained by LugLess (the "Insurance Policy"). The Insurance Policy is underwritten by an authorized insurance company (the "Insurance Underwriter") and produced by insurance broker UPS Capital Insurance Agency, Inc. (“UPSCIA”). LugLess is the sole assured and sole policyholder under the terms of the Insurance Policy. For shipments of cargo duly insured under the Insurance Policy, the Customers shall be loss payees to the extent of their interest in the insured shipment. UPSCIA has prepared this explanation of program coverage (this “Explanation”) to summarize coverage terms under the Insurance Policy for the benefit of Customers in their capacity as prospective loss payees. Adherence to the terms summarized in this Explanation is a condition precedent for Customers’ shipments of cargo to be included and protected under the Insurance Policy.

How to Request Coverage
Before requesting that a shipment of cargo be included for coverage under the Insurance Policy, the Customer should fully review this Explanation to ensure that their shipments are eligible for inclusion and to understand the terms of protection offered under the Insurance Policy. In accepting the terms of coverage under the Insurance Policy, the Customer does so on behalf of itself and on behalf of all parties with any interest in the cargo. To request that a shipment be included for coverage under the Insurance Policy, the Customer must follow the instruction on the LugLess platform.

Eligible Conveyances and Routes
Ground, air and ocean shipments are eligible for coverage under the Insurance Policy. Both international shipments and domestic shipments are eligible for coverage under the Insurance Policy, provided that whenever coverage provided by the Insurance Policy would be in violation of any U.S. economic or trade sanctions coverage will be null and void.

Coverage Limits
Coverage under the Insurance Policy is limited in all events to $4,000 per any one shipment conveyance or occurrence.

Scope of Coverage
The Insurance Policy provides coverage for physical loss and/or damage to package contents in the course of transit, subject to insuring conditions, limitations and exclusions. Physical damage to the luggage up to $200.00 only in instances where the luggage is deemed unusable. In the event a piece of luggage is lost, contents are covered up to $3,500 upon receiving sufficient proof of loss/proof of reimbursement, No exceptions. Maximum liability is not automatic — damage or loss value must be proven. The insurance coverage under the Used Goods Endorsement is warranted free from and shall in no event provide coverage for: any preexisting damage, including minor cuts, scratches, and broken zippers as a result of over packing, or for wear and tear resulting from ordinary handling of baggage, nor for marring, scratching, chipping, cracking, or denting of Used Goods howsoever caused. LugLess reserves the right to decline certain shipments be included under the Insurance Policy. The scope of coverage under the Insurance Policy is summarized as follows:

  1. Duration: Coverage under the Insurance Policy commences upon the shipment of cargo leaving the origin warehouse of the insured transport and continues during the ordinary course of the transit, including customary transshipment, until the sooner of: (i) delivery to final warehouse at the destination of the insured transport; or (ii) fifteen days after the shipment arrives at the destination port, airport or other hub, if not yet delivered to final warehouse at the destination of the insured transport. It is therefore important to facilitate prompt final delivery of the shipment after its arrival at the destination port, airport or other hub. A piece of luggage is delayed and LugLess provides sufficient proof of reimbursement to its customer for service fees charged to the customer and reimbursement up to $300.00 of customer’s out-of-pocket expenses incurred as a direct result of the delay per the LugLess Terms of Service; or a piece of luggage is lost and LugLess provides sufficient proof of reimbursement to its customer for service fees charged to the customer and payment up to $3500.00 in declared value per the LugLess Terms of Service.
  2. Valuation: $200 Maximum limit for luggage/suitcase; $3500 Maximum limit for luggage content; Up to $300 Consequential coverage for service fees and out of pocket expenses, including weather coverage.
  3. Excluded Commodities:
    Not all commodities are eligible for coverage under the Insurance Policy.  LugLess is intended for the shipment of clothing and sports equipment.  Loss of or damage to certain items are excluded from coverage including, but not limited to:
    • Electronics: Any electrically powered device including computers, monitors, televisions, cell phones, range finders, appliances, photographic and audio equipment
    • Fragile objects: Any item with fragile qualities or temperature sensitivity including glassware, china, crystal, porcelains, furniture, musical instruments
    • Valuables: Any jewelry, watches, precious metals, bullion, coins, gemstones, furs, collectables, souvenirs, memorabilia, heirlooms
    • Works of art: Any work created or developed by the application of skill, taste or creative talent for sale, display or collection
    • Documents: Any cash, cash equivalents, stamps, contracts, tickets, gift cards, deeds, notes, securities, accounts receivable, books, manuscripts
    • Prohibited: Any items prohibited by LugLess including contraband, illicit goods, fish meal, nuclear fuel and substances
  4. Excluded Risks: As with all insurance, coverage under the Insurance Policy is subject to exclusions which exclusions specifically include loss or damage resulting from or attributable to:
    • war risks for U.S. (continental) domestic shipments;
    • radioactive contamination;
    • delay, whether or not caused by an insured peril;
    • temperature variation, whether or not caused by an insured peril;
    • inherent vice;
    • fraud or infidelity by you, the shipper or consignee;
    • misrepresentation / false information by you, the shipper or consignee;
    • cyber attacks;
    • illicit trade;
    • capture, seizure, arrest or detainment of goods by public authority;
    • nuclear contamination;
    • rust, oxidation, discoloration, scratching, marring, denting, chipping and/or electrical or mechanical derangement to used goods, whether or not caused by an insured peril;
    • Consequential and indirect damages, such as loss of market, depreciation, or diminution in value as a result of repair; and
    • improper, inadequate or otherwise unsuitable packing or preparation of the cargo, provided this exclusion will not apply to the extent that: (i) such packing or preparation was carried out by a third party other than you, the shipper, consignee or anyone bearing an interest in the cargo; and (ii) the deficiency was unknown to you, the shipper, consignee and anyone bearing an interest in the cargo.

Claim Reporting Limitation & Claim Process:
Immediately report to UPSCIA in writing any loss or damage to an insured shipment of cargo. As a condition precedent for coverage under the Insurance Policy, claims must in all events be submitted within the following timeframes: (i) in the event of a claim for concealed loss or damage, within 30 days from the date of delivery; or (ii) for all other claims, within nine months from the date of delivery. In the event of a claim for non-delivery, the time-for-claim shall run from the date that the cargo was scheduled to have been delivered or should have reasonably been delivered, whichever is first in time. In the event cargo insured under the Insurance Policy has or may have suffered a loss, submit the claim with all supporting documentation and information to UPSCIA as follows: See Program Summary. Loss verification will be required. By submitting or pursuing any claim as loss payee under the Insurance Policy, the claiming party agrees to fully cooperate in providing all documentation and information pertinent to such claim, including an examination under oath if requested by the Insurance Underwriters.

Notice of Full and Additional Terms:
Under all circumstances, the terms and conditions set forth in the Insurance Policy issued to LugLess shall control and determine insurance coverage. To the extent any terms and conditions stated in this Explanation conflict with those in the Insurance Policy, the Insurance Policy shall control and be binding as to issues of coverage under the Insurance Policy. You may make a written request to LugLess to obtain a copy of the Insurance Policy. UPSCIA and LugLess reserve the right to change Insurance Underwriters and to allow insuring terms for coverage to be modified in at any time and without notice to Customers, provided that coverage shall always substantially adhere to the summary herein and shall absent notice be without interruption. UPSCIA and LugLess also reserve the right to update the terms of this Explanation and to re-distribute such updated Explanation(s) to the Customers of LugLess at any time.

All packages shipped before 1:00 PM EST on August 13, 2020 are subject to these Terms of Insurance instead of the terms listed above.

Last updated: November 24, 2020