Transit Policy Covers Goods Sold but Not Delivered?

Q

Until recently, our insured had been shipping goods to their customer for more than twenty years without a single instance of property being lost in transit. This record indicates that there is no reason to doubt the integrity of our insured or their customer. The question of integrity is important because the customer's employee signed a bill of lading indicating receipt of a shipment, yet the customer later discovered that it was in fact not received. The shipment was unique, so there is no chance that it might have been misplaced in the customer's warehouse.

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