Shipping expensive items RESPONSES
Randy McFarland
Description
Collection
Title:
Shipping expensive items RESPONSES
Creator:
Randy McFarland
Date:
3/13/2003
Text:
Original Question:
We just replaced a cosmetic cover on a TF prosthesis and the client
wants us to ship it back to him. When you send expensive items via
Federal Express or UPS, do you pay extra to upgrade the insurance
coverage? Do you insure for the value of the components alone, or your
investment in the prosthesis or do you insure for the billed value of
the prosthesis?
I'll post replies.
Randy McFarland, CPO
Sunny Hills Orthopedic Services, Inc.
Responses: separated by a blank line (thanks to all who contributed!)
To protect yourself I would insure the device to the amount you would
want to collect if the device was lost was lost. If you certify the
mailing there may be some coverage limits that automatically take effect
so you may not need any additional insurance.
Check your general insurance coverages. I know that JLT (Jardine) has a
transportation rider, I believe you're covered under that. Your policy
will tell you the amount of coverage.
Purchasing any amount of additional insurance mandates that a proof of
delivery signature be obtained by the delivery person, which gives some
peace of mind.
Your professional insurance policy covers such loss. In my policy it is
listed as Property mailed and shipped with coverage limit $5000. Of
course you may upgrade the coverage, but paying a commercial carrier for
insurance is EXTREMELY expensive.
When I ship expensive items VIA UPS, I pay the extra money for insurance
(it's not that expensive) and I insure it for the replacement value, not
the billed cost. UPS will only reimburse the replacement cost, no
matter how much insurance you buy (found that out the hard way!)
I pay extra for the insurance and insure for replacement cost. (What it
would cost the amputee out of pocket to replace, full value. There is no
guarantee that you will be around to replace it or that it can be
obtained at any discount that might have applied when it was first fit.)
I also have the item tracked which I can easily do through the Internet.
Would not ship a prosthesis any other way. Did once and it got lost for
two weeks at the fabricator. Good idea to tape your business card to the
socket.
I have been shipping thru UPS for 15 years now and have never had one
lost or stolen. I do not purchase any extra insurance at all. If the
patient is paying and they want this assurance then I let them know and
they pay.
Think about the worst case scenario - If it got lost/damaged what
would the Client/patient want? Answer= Replaced. What would you charge
your client to replace the prosthesis? Answer= It depends on whether you
had the master model/last test socket, or, if you had to start from the
beginning - impression-mold; test socket(s); dynamic biomechanical
alignment, etc. There are two ways to approach it: 1) you ask the client
how s/he wants it sent - with insurance to cover the worst case scenario
cost or just the cost of components; 2) don't ask the client and send
it the way you want. The latter way puts ALL the responsibility on you.
The former puts the responsibility where I feel it belongs - on the
client. We charge the client for all shipping costs so we always ask how
s/he wants it sent and explain the consequences, enter it in the chart
accordingly.
Insure it for whatever you want........10k... just the cost of the
components......the Medicare reimbursement.....your time and cost
invested........whatever you feel you should be compensated for in the
event that it is lost or damaged. Beware, the UPS or FEDEX insurance
fees are very expensive for high insured items.
Only made the mistake of NOT insuring once. Made a grandmother go to
her granddaughter's wedding in her temporary! I'm still not over it 13
years later. I was more upset than the patient. Your time and the
patient's inconvenience has value. For an endo AK spend a few dollars
for 10,000. in insurance. UPS/FED EX have both informed me they do
handle things more efficiently when insured. Could be just a line, but
at least we would get the money back after the waiting period. I also
ALWAYS make someone sign for it. No back porches! We are in a midwest
area;that is a common practice out here by the delivery service.
We ask the patient to pay the shipping and insurance costs making it
clear
on the front end that this is a patient out of pocket expense. Most
patients understand shipping costs and are willing to pay. We ask for
this
fee up front in cash or credit card payment. We offer a cheaper
alternative: patient's or their families can pick up items during
business
hours and avoid shipping charges. PS: we always insure for the retail
cost
of the orthosis or prosthesis.
I've been shipping UPS daily for 23 years to and from our central fab.
The only lost item, a prosthesis, was tracked down and correctly
delivered the next day. I do insure myo-electric arms just in case,
peace of mind insurance.
Insure the entire replacement cost of the prosthesis, whatever is your
usual and customary fee. Insurance is usually extra.
We always insure for the replacement cost of the device if it is over
the $100.00 that UPS; FedEx; and Airborne will pay without a
declaration. Those few extra dollars you pay to insure over and above
will be well worth it if the item is lost or damaged.
Insure for the billed value and have the party who requested the
shipping pay for the added insurance by returning COD unless other
arrangements are agreed upon.
I just insure for the cost(to me) to replace the item.
When shipping via UPS, packages are insured for up to $100. Additional
insurance can be purchased simply by indicating the dollar amount you
want it insured for...I would suggest the retail value, as you are the
one paying the insurance fee; which happens to be a mere .35 cents per
additional $100 of value. In other words, if you were to insure
something for $1,100, since the first $100 is insured at no charge, it
would cost you an additional $3.50. Cheap...and worth it.
We just replaced a cosmetic cover on a TF prosthesis and the client
wants us to ship it back to him. When you send expensive items via
Federal Express or UPS, do you pay extra to upgrade the insurance
coverage? Do you insure for the value of the components alone, or your
investment in the prosthesis or do you insure for the billed value of
the prosthesis?
I'll post replies.
Randy McFarland, CPO
Sunny Hills Orthopedic Services, Inc.
Responses: separated by a blank line (thanks to all who contributed!)
To protect yourself I would insure the device to the amount you would
want to collect if the device was lost was lost. If you certify the
mailing there may be some coverage limits that automatically take effect
so you may not need any additional insurance.
Check your general insurance coverages. I know that JLT (Jardine) has a
transportation rider, I believe you're covered under that. Your policy
will tell you the amount of coverage.
Purchasing any amount of additional insurance mandates that a proof of
delivery signature be obtained by the delivery person, which gives some
peace of mind.
Your professional insurance policy covers such loss. In my policy it is
listed as Property mailed and shipped with coverage limit $5000. Of
course you may upgrade the coverage, but paying a commercial carrier for
insurance is EXTREMELY expensive.
When I ship expensive items VIA UPS, I pay the extra money for insurance
(it's not that expensive) and I insure it for the replacement value, not
the billed cost. UPS will only reimburse the replacement cost, no
matter how much insurance you buy (found that out the hard way!)
I pay extra for the insurance and insure for replacement cost. (What it
would cost the amputee out of pocket to replace, full value. There is no
guarantee that you will be around to replace it or that it can be
obtained at any discount that might have applied when it was first fit.)
I also have the item tracked which I can easily do through the Internet.
Would not ship a prosthesis any other way. Did once and it got lost for
two weeks at the fabricator. Good idea to tape your business card to the
socket.
I have been shipping thru UPS for 15 years now and have never had one
lost or stolen. I do not purchase any extra insurance at all. If the
patient is paying and they want this assurance then I let them know and
they pay.
Think about the worst case scenario - If it got lost/damaged what
would the Client/patient want? Answer= Replaced. What would you charge
your client to replace the prosthesis? Answer= It depends on whether you
had the master model/last test socket, or, if you had to start from the
beginning - impression-mold; test socket(s); dynamic biomechanical
alignment, etc. There are two ways to approach it: 1) you ask the client
how s/he wants it sent - with insurance to cover the worst case scenario
cost or just the cost of components; 2) don't ask the client and send
it the way you want. The latter way puts ALL the responsibility on you.
The former puts the responsibility where I feel it belongs - on the
client. We charge the client for all shipping costs so we always ask how
s/he wants it sent and explain the consequences, enter it in the chart
accordingly.
Insure it for whatever you want........10k... just the cost of the
components......the Medicare reimbursement.....your time and cost
invested........whatever you feel you should be compensated for in the
event that it is lost or damaged. Beware, the UPS or FEDEX insurance
fees are very expensive for high insured items.
Only made the mistake of NOT insuring once. Made a grandmother go to
her granddaughter's wedding in her temporary! I'm still not over it 13
years later. I was more upset than the patient. Your time and the
patient's inconvenience has value. For an endo AK spend a few dollars
for 10,000. in insurance. UPS/FED EX have both informed me they do
handle things more efficiently when insured. Could be just a line, but
at least we would get the money back after the waiting period. I also
ALWAYS make someone sign for it. No back porches! We are in a midwest
area;that is a common practice out here by the delivery service.
We ask the patient to pay the shipping and insurance costs making it
clear
on the front end that this is a patient out of pocket expense. Most
patients understand shipping costs and are willing to pay. We ask for
this
fee up front in cash or credit card payment. We offer a cheaper
alternative: patient's or their families can pick up items during
business
hours and avoid shipping charges. PS: we always insure for the retail
cost
of the orthosis or prosthesis.
I've been shipping UPS daily for 23 years to and from our central fab.
The only lost item, a prosthesis, was tracked down and correctly
delivered the next day. I do insure myo-electric arms just in case,
peace of mind insurance.
Insure the entire replacement cost of the prosthesis, whatever is your
usual and customary fee. Insurance is usually extra.
We always insure for the replacement cost of the device if it is over
the $100.00 that UPS; FedEx; and Airborne will pay without a
declaration. Those few extra dollars you pay to insure over and above
will be well worth it if the item is lost or damaged.
Insure for the billed value and have the party who requested the
shipping pay for the added insurance by returning COD unless other
arrangements are agreed upon.
I just insure for the cost(to me) to replace the item.
When shipping via UPS, packages are insured for up to $100. Additional
insurance can be purchased simply by indicating the dollar amount you
want it insured for...I would suggest the retail value, as you are the
one paying the insurance fee; which happens to be a mere .35 cents per
additional $100 of value. In other words, if you were to insure
something for $1,100, since the first $100 is insured at no charge, it
would cost you an additional $3.50. Cheap...and worth it.
Citation
Randy McFarland, “Shipping expensive items RESPONSES,” Digital Resource Foundation for Orthotics and Prosthetics, accessed November 5, 2024, https://library.drfop.org/items/show/220891.
