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More Glossary Terms

Concealed Damage

Concealed damage claims occur when a receiver finds item damage or a product shortage in a shipment that has been delivered and unpacked, unpalletized, or opened. Like any other claim, the carrier is liable for loss or damages caused by the carrier’s negligence, but concealed damage claims can be more challenging to prove.
What Is a Concealed Damage Claim?

Concealed damage claims occur when a receiver finds item damage or a product shortage in a shipment that has been delivered and unpacked, unpalletized, or opened. With large, palletized freight shipments, identifying concealed damage takes time. This gap between delivery and filing a claim sometimes leads to payment delays or denials, especially if best practices are not followed.

Like any other claim, the carrier is liable for loss or damages caused by the carrier’s negligence, but concealed damage claims can be more challenging to prove.
Why Does Concealed Damage Happen?
Concealed damages can occur throughout the delivery process. From loading or consolidation to in-transit and unloading phases, concealed damage can occur anytime during the delivery process. Quickly identifying and providing evidence for damages that aren’t your responsibility is critical to successfully processing a concealed damage claim. Even if the delivery receipt has been signed as clear, receivers should report damaged, lost, or missing product as soon as it is identified within the allowable time frame set by the carrier.
What is the Time Limit to Submit a Claim on Concealed Damage?
Once concealed damage is identified, it’s important to file a claim with the responsible party as quickly as possible. Although there is no set standard for the time allowed to report a claim, many carriers require the delivery recipient to file a concealed damage claim within 5 days of delivery. Shippers should familiarize themselves with the shipping contract to ensure that–if damages or product shortages do occur–claims are properly reported in the required time frame.
How Do I Reduce the Risk of Losses Due to Concealed Damage Claims?
Timing and recording pre-shipment conditions are critical to proving the product was in good condition before the carrier picked up the shipment. Shippers can take the following precautions to reduce risk of losses due to concealed damage claims:
  • Photograph items and packaging to show the condition of the shipment at the point of origin
  • Use temperature, impact, and tilt recorders to monitor the conditions of the shipment’s journey
  • Record how the shipment was handled prior to and during the loading process
  • Identify who handled and loaded the goods, and how the shipment was secured

Streamline claims management with MercuryGate TMS

How MercuryGate Helps Businesses Navigate Concealed Damage Claims

Nobody wants damages to occur throughout the course of a shipment, but it’s important to be prepared and respond quickly when damage or loss occurs. MercuryGate TMS helps businesses eliminate manual and legacy freight claims processes with workflows that automate processes and enable end-to-end claims management.

Shippers, carriers, and 3PLs can achieve cost savings and gain efficiency through the MercuryGate Claims Management portal–a settlement solution that lets business:

  • Automate claims reporting and management processes
  • Integrate settlement solutions into their TMS
  • Streamline communications during the claims lifecycle
  • Reduce transaction costs and timelines
  • Improve overall claims recovery rate

MercuryMyEZClaim automates and streamlines claims management processes for shippers and 3PLs:

  • Use mobile upload to instantly add photos of damages to your claim
  • Avoid processing delays with required fields and quality assurance workflows
  • Send the auto-generated digital claim form to the carrier via email

MeruryCarrierClaim reduces manual processes with online access to tools that help carriers:

  • Quickly convert incident reports to claims
  • Collect supporting client documentation
  • Track salvage details
  • Create customer claims portals
When damages or losses are discovered after the delivery has been unloaded and confirmed, businesses need a solution that can help them file and manage concealed damage claims. MercuryGate TMS gives shippers, carriers, and 3PLs the tools and technology to improve results for claims management.

Get tips for preventing and resolving concealed damage claims from this ebook: The Guide to Concealed Damage Claims.

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