Money in
transit: An obvious risk - buying agents carry cash. An insurance
company may offer a cash in transit cover as part of a general policy but the
extent of such a cover is always limited so be sure to find out exactly what is
covered and what is not. When coffee values change the amount of necessary cash
will change as well.
Ownership at inland
buying stations: At this stage coffee is often packed in unmarked bags
and is very difficult to identify. Keep stocks at such stations to a minimum and
transfer them to a central location as soon as possible. Unless there is a good,
formal record system at the buying station it may be difficult to insure risk at
this stage. Be certain to advise the insurance company of all circumstances,
including negative aspects, to prevent difficulties arising after a loss
occurs.
Inland
transit: Often inland transit is by small trucks under variable
conditions of transport quality. Arrivals must therefore be checked for quality,
weight and moisture content. To make fraudulent manipulation more difficult
samples should be taken by a member of the quality control department rather
than by warehouse staff.