When would I need to purchase Transit Risk Insurance?

Domestic Shipping and Insurance

Risk Management no longer requires prior approval to insure domestic orders exceeding $100,000. While the entire amount of a purchase exceeding $100,000 can be covered by the University of California (UC) insurance during transit, your department must have a conversation with Risk Management for each purchase to address shipment details and allow Risk Management to provide specific safety recommendations. For example, they may recommend requiring a receipt signature rather than allowing a carrier (such as FedEx or UPS) to drop a high-value box at a door.

Procurement will work with your department on international purchases and domestic purchases exceeding $100,000 to ensure Risk Management is consulted. You can expedite the process by proactively contacting Risk Management and including a copy of their determination email with your requisition. Questions regarding Transit Risk Insurance can be sent to ron.betancourt@ucsb.edu.

International Shipping and Insurance

For international orders, if the vendor is paying for all transportation and insurance charges and is the Importer of Record through Customs, the department does not need to apply for transit risk insurance.

However, if the university is paying for transportation charges and your purchase exceeds $1,000, your department must apply for Transit Risk Insurance. Please complete and submit the Foreign Transit Risk Insurance Application (PDF). Please note that there is a $1,000 deductible on these claims.