UPS Subsidiary Faces Revived Suit over Shipping Insurance

UPS Capital Ins. Agency Inc. may have owed a heightened duty of care to a customer whose package was damaged during shipping in a manner not covered by the insurance package he had purchased, a California state appeals court said, reviving breach of contract claims against the broker.

David Murray sued the UPS subsidiary after nearly $40,000 in computer equipment was damaged by UPS while being transported from California to Texas. UPS had directed Murray to purchase insurance coverage for the shipment from UPS Capital, but after submitting a claim for the damage he discovered his policy only covered catastrophic ...