Unrecovered claims may have a significant impact on a business’ bottom line. The smaller the margin, the greater the impact. Claims processing is typically an integral part of a transportation company’s business. However, policies are generally customized to meet the needs of individual client organizations. Understanding the risks are essential to buying the right freight liability programs.
Liability products can help carriers, brokers and shippers mitigate risk regardless of size. Each type of business is exposed to risk in varying degrees under particular circumstances.
Cargo insurance coverage is generally activated when motor carrier negligence is proven. Depending on the policy, particular types of freight may be excluded, only specific equipment may be covered and certain events may need riders.
Errors & Omissions policies protect the broker if an oversight in the course of business or an error occurs that results in the customer’s financial loss. A policy combining these two products can reduce or eliminate coverage gaps and overlaps.
Carrier insurance coverage depends on the mode of transportation. Motor carrier insurance may be written differently than marine, air or rail carrier policies. The type of goods being transported can also affect the policy inclusions. Insurance agents and brokers who partner with underwriters specializing in freight liability programs can help their clients mitigate risk and offer protection from claims.