3 Common Questions About Shipper’s Interest Cargo Insurance
An unfortunate reality of freight is the fact of facing lost, stolen or damaged goods. For most companies, the first questions are “Is everyone okay?” and “Does our insurance cover this?”.
Many of us in the freight industry know the first step is to file a claim, but to do that, you are faced with the frustrating, tiring and demanding, fact-gathering task that is necessary with any accident or loss… you need answers. Who is responsible for the accident? How much damage occurred to the vehicles, trailers, and freight? Who is at fault in this accident? How much will it cost my company in time and lost revenue? What are the next steps?
When dealing with freight claims issues, the longer it takes to deal with unpaid and unresolved problems, the more it can cost your company. If you are prepared and understand how to address these issues quickly, you can get back to business sooner and efficiently.
Things you should know about shipper’s interest cargo insurance:
What is shipper’s interest cargo insurance?
Shipper’s interest cargo insurance is essentially what it sounds like: insurance that is obtained by shippers to ensure that value of the transported goods is protected from potential losses. The insurance covers physical damage and theft and can be purchased for road, rail, boats, aircraft and more. Shippers typically get this insurance as a safety net to reduce the gaps in coverage.
I thought carriers already covered shipments for loss or damage of freight?
All motor carriers are required to have some level of declared value or carrier’s liability insurance. This, however, is not a guarantee of coverage for the full replacement costs of your stolen or damaged goods. For most freight, a carrier’s liability insurance is adequate, but shipper’s interest cargo insurance can provide the additional coverage needed, adding peace of mind when it may be needed most.
Why should I get shipper’s interest cargo insurance?
Shipper’s interest cargo insurance is typically recommended for freight considered high value or even high risk for damage and/or theft. If you are considering obtaining shipper’s interest cargo insurance, but not quite sure where to begin, you should always consult with a reputable insurance broker. Since there is no “standard” shipper’s interest cargo insurance, the insurance broker can explain the many options and can customize a policy that fits your budget and needs.
These unresolved and unfiled freight claims add up over time. What may seem like an insignificant amount at the time can chip away at your bottom line, particularly when you have multiple claims added up.
Considering the time and effort involved in reporting, documenting, and resolving freight claims, the investment quickly adds up. The best approach to shopping for shipper’s interest cargo insurance is to receive quotes from three or more reputable insurance brokers. Because there are so many options and variables in each policy, be sure when you review the final quotes you are considering the details of each policy.
Director of Marketing & Media, C.L. Services