We have an insured who is in the wholesale business of distributing medications and utilizes the USPS to ship packages to customers. One invoiced shipment included medication packaged in three different boxes. All three boxes were invoiced and picked up by USPS on the same day. Only two of the boxes arrived. The USPS has no tracking to identify the missing package's whereabouts. Should exclusion 11. in the attached form apply as "shortages of property where there is no physical evidence to show what happened to the property"?

Michigan Subscriber

You are correct that exclusion 11. would apply to the loss. There is no way to discover what happened to the package of medications; it could have fallen off the truck, been stolen, or be lost somewhere in a USPS warehouse only to turn up in a month or two. The exclusion applies.