GoJIT: “There was a loss”

This Week in Me features an interview with Serge Duchaine of GoJIT, the Dorval-based transportation company which lost a lawsuit last month and was ordered to pay over $118,000 to a St. Tite company for $90,000 of lost cowboy boots.

Doing the interview, I learned something interesting about standard practices in the industry (emphasis mine):

Gazette: Why did you offer only $6,000 in compensation for $90,000 of lost merchandise?

Duchaine: When you don’t insure goods, you’re automatically insured for $2 per pound. All the rates are based on the value you’re carrying. So the guy says: “It’s not enough, I’d like to protect all our merchandise.” There’s an insurance fee that every transport company has in the industry. More than 95 per cent of clients take a calculated risk. It doesn’t happen enough for them to buy this coverage. If someone says they want more protection, they have to buy it from an insurance company.

Ironically, it’s GoJIT which had insurance in this case: liability insurance. So the insurance company, which would have to foot the bill, is appealing the decision.

Still, it would be nice to know how 88 boxes on six palettes, over 100 square feet of warehouse floor space, just disappeared without a trace.

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