Employee Liability for Excess Valuation Charges

An authorized certifying officer of the General Accounting Office (GAO) submitted the carrier's invoice for the cost of excess valuation insurance on the shipment of the household goods of a GAO employee. The goods were shipped from Ohio to Alaska, and the government paid the transportation charges for the shipment, including the insurance costs billed. GAO now seeks to collect the money from the employee who declared the valuation above the carrier's minimum released valuation. GAO held that the carrier was responsible for the full amount of valuation in the event that the shipment was lost or damaged in transit, even if the government did not authorize the extra valuation. The federal employee was within his rights to authorize the extra valuation; however, he must bear the additional costs of that coverage. GAO further held that the liability of the employee for the insurance costs is a matter between that employee and the carrier. The amount erroneously paid by the government should be recovered.