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C7.10.1. Title of Foreign Military Sales (FMS) shipments transfers to the purchaser at the point of origin unless otherwise specified in the Letter of Offer and Acceptance (LOA). The Department of Defense is not responsible for any loss or damage that occurs in transit or after passage of title. If a purchaser does not want to self-insure a shipment, the purchaser should obtain commercial insurance. Commercial insurance is highly encouraged for large dollar value items. The FMS freight forwarder should arrange commercial insurance as part of its contract with the FMS purchaser. In exceptional situations, an Implementing Agency may obtain insurance and the cost of the insurance will be billed as a separate line item on the Letter of Offer and Acceptance.