Errors & Omissions – In Documentation

Background:
The numbers of two containers of pharma goods going from India to Russia via Finland, got wrongly interchanged with the MTD’s. The entire cargo was confiscated by the customs at transshipment

Liability:
Value of the goods: Appx. USD 100,000
No limitation available
No defense except mistake committed while documentation

Conclusion:
Simple mistakes can prove very costly
Full claim had to be paid to the shipper
Insured had overall policy limit of USD 1 million, but, E&O limit was only USD 50,000, therefore the balance was borne by the MTO