FedEx - Limited Liability for Vintage or Custom Instruments
 

If you are not yet aware of FedEx's policy regarding liability limitations, you should be. The change is a couple years old now, but I have found that some FedEx staff will accept packages without questioning the age of the instrument.

So who cares? You will when your instrument is damaged in shipment, you file a claim, and are then told to read the Limitations of Liability. Ouch!

Here it is:

2017 FedEx Service Guide
http://images.fedex.com/us/services/...Guide_2017.pdf

See page 138, "Limits of Liability" Section F.12.

F. Shipments (packages or freight) containing all or part of the following items are limited to a maximum declared value of US$1,000:

... 12. Guitars and other musical instruments that are more than 20 years old, and customized or personalized musical instruments.

Ignorance is neither an excuse nor protection. Be aware.

This is an extremely good post! I love FedEx and use them exclusively but was not aware of this. And while I've not shipped any guitars (yet) that would fall under this provision, if I had I would have basically payed for extra fees that I didn't need to.

I do my shipping online so I just enter box size and weight, destination and declared value. I never provide, nor do they ask, about what's in the box. Shipping fees are calculated by adding on extra cost per $100 increments over $100. Because of this rule if my guitar was a vintage instrument or expensive custom that was older than 20 years old, I would be paying extra fees for any declared value over $1,000 and not know!

I know a few recent posts around USPS performance had people talking about using an after-market insurance (Heritage?). This might be a good thread (or maybe a standalone one) to discuss aftermarket insurances.

Regardless of this revelation, I still greatly prefer FedEx but it's good information to have. I'm glad someone is paying attention to the small print!! Kudos to the OP!!

I assume that all of the so-called "insurance" coverage sold by all the shippers is a money-making scam for either virtually no coverage, or there are so many loopholes that coverage is effectively non-existent. Experience has taught me to be cynical. They are happy to take your money and sell "coverage" but stonewall big time when there is any kind of claim.

I have my key instruments covered by a rider to my homeowners policy, and have a declaration in writing from my agent that they are covered for all-risk replacement value, even when being shipped. If my rider didn't cover it, I would add Heritage or other third-party coverage. But mostly I try to not ship instruments anywhere, if at all possible.

WOW - I had no idea! I use FedEx all the time; they've been great, but I always insure my shipments - using Heritage. It's a LOT cheaper than FedEx 'insurance' (less than 1/4 the cost per same value shipment, in my experience), and though I've never filed a claim, their reputation on AGF is excellent for quick and painless settlement in case of loss. And they don't have any funny limitations around age or value of a guitar - just straight-up insurance for a guitar's value.

This thread gives even more reason to stick with musical instrument insurers like Heritage. :up::up::up:

This is really interesting. i wonder what other carriers do?

Wait... if i'm getting some of these posts right, Fedex has been charging incrementally more for coverage over $1000 that does not exist?

If so, that sounds like a Federal Trade Commission complaint, along with an Attorneys General complaint as well.
People with receipts should be able to recoup the overage in it's entirety.

You say "coverage" as if you think they sell insurance. They don't. It's been covered many times on many forums. None of this is hidden, as it is all in the Terms of Service.

While it is not simplest or most accessible choice, third party insurance is the only way to real insurance for the actual value and possible diminished value of the instrument.

You are in fact "covered" for losses up to $1,000.

So what's the difference?

Covereage, insurance, if you have a $500 widget that gets busted up or goes missing, it gets paid for.

I'd say that's good enough insurance within the limits of "coverage".

So my original comment stands. If they're selling "coverage" in increments that are not in fact "covered", then that is indeed bogus.

If you read the terms of service you should be clear on what you're getting for the fee. That is the contract and what is actually says is far more important than what anyone here thinks it should mean.

I discovered this some years back, when I had to ship my Angus down to Laguna Beach for some neck work... this policy was the biggest reason that I sent my guitar via USPS and paid for them to pack my guitar "their way"...

The shipping went just fine, but it was expensive, at least more than I figured it would be...

I spoke with a friend who owns a music store and ships things Fed-Ex almost exclusively, and he didn't believe me... even after he READ IT HIMSELF he still didn't believe it... said he has never had a problem with Fed-Ex honoring a claim for a damaged instrument, regardless of worth or age...

I would not use Fed-Ex for my guitars... not until they change that policy...

jseth, if you require the carrier to provide insurance, then your position makes total sense. I've read many times on AGF that the coverage provided by carriers isn't 'insurance' as such, and that 3rd party musical instrument insurance (such as I have with Heritage) is a more secure way to de-risk shipping, regardless of carrier/coverage combo. Icing on the cake is that it's cheaper, at least in my experience. Recent example: I shipped a guitar last Monday and FedEx 'coverage' for the guitar's value was over $100 extra cost, while my Heritage policy only charged $28 to add the guitar for shipping coverage. I struggle to imagine why one would ever use carrier 'coverage' when it's so inexpensive to get music instrument insurance that appears to do so much more for so much less money.

In all humility - is there a good reason to use a shipping carrier's coverage vs less expensive 3rd party music instrument insurance? If I'm missing out on a smarter way, would love to hear it and upgrade my approach.

My understanding, which may be incorrect, is that the fee charged for the stated value of the guitar is actually to surreptitiously offset their costs for carrying the higher value freight and not insurance for the consumer if there were to be a claim.

That being said, if a guitar seller/shipper were to use their own insurance (Heritage, Anderson, Clarion), and they declared say a $1000 value with UPS (since they are not using UPS insurance), would the private carrier dispute the real value of the guitar indicating that the declared value of the guitar in shipping became the new value of the guitar (and not the value listed on the private policy)?

I know that took a lot of words to ask a poorly phrased question....but hopefully you get the point.

I think the stated value is not to offset shipping costs, but to cover the carrier's liability up to the stated value (with any value over $100 causing an increase in shipping cost, presumably to cover the additional liability taken on, to the extent they take it on). FedEx states it this way as part of their info for setting up a new shipment:

Did you verify for sure that Heritage covers shipping AFTER the sale? I have Clarion and I'm shipping a guitar tomorrow that I just sold, so I called them about it. This thread got me thinking about adding to my policy temporarily and opting out of FedEx insurance. To my surprise, they told me that ownership transfers when I accept payment. Sounds like they might cover if I'm shipping for repairs, etc, but a sale is out of their arena. If you know for sure that heritage covers, I'll have to check into them for next policy year. I thought clarion was one of the biggest with best coverage.

There are several companys that offer shipping insurance such as Parcel Insurance Plan, UPIC, Shipsurance. We never hear about anyone using these. I wish some of us would so we could know if they are as good as they seem. I shipped a guitar across the nation recently and Used UPIC cause I knew the shippers didnt offer insurance and I didnt want to pay the $200 apx for Heritage or Clarion and they might not even cover a loss anyway based on what someone above said. Fortunately there was no claim cause there was no accident. But for those of us that very seldom take our guitars out of the house or seldom ship we as a guitar community have to come up with some alternatives to what is usually discussed such as this thread.