Concealed damage coverage is insurance or claims protection for cargo damage that is not visible at the time of delivery but is discovered after the packaging is opened. This is important because a shipment may appear intact externally and be signed for clean, even though the contents are broken, scratched, crushed, or missing. Concealed damage coverage can help cargo owners recover losses, but claims usually require quick reporting, photos, packaging evidence, delivery records, and proof that the damage occurred during transit. Shortages and visible damage are usually recorded as OS&D (over, short and damaged) on the delivery receipt, while concealed damage is found only after the cartons are opened.
- Damage detected when outer cartons are opened, often days after delivery
- All-risk policies typically include concealed damage if reported within 15 to 30 days of delivery
- Document damage with photographs before further unpacking
- File the insurance claim within the policy’s reporting window
Related terms: Cargo Insurance, All-Risk Coverage, Control of Damaged Goods, Bill of Lading (BOL).
