When your client arranges for the transportation of goods across the US, or around the globe there’s always a possibility that the cargo may experience delays or never make it to its final destination. If an accident occurs those goods may even wind up being damaged in transit. There are often news reports about major calamities resulting in ships sinking leaving customers to file claims in order to receive compensation.
For freight forwarders, this can really wreak havoc to their bottom line. In order for them to reduce their exposure as well as protect their profits from these types of losses, they need contingent cargo coverage that addresses these issues.
Insurance that provides protection
If you own, manage, or operate a business related to this vital industry then you need to enlist an agent that specializes in insuring transportation and logistics specialists to find which contingent cargo liability insurance you’re going to need in order to be properly protected. Many transportation brokers, freight forwarders, importers/exporters and logistics providers face many of the same challenges and concerns when it comes to ensuring that any freight in their care will safely make it to its destination.
Anytime your client arranges for a shipment of goods to be delivered to an important customer and those goods fail to arrive on time, or are lost, damaged or stolen, the first question will be is the shipment covered for such a loss.
For example, let’s say that you agree to transport a load of expensive airplane parts for a client. The process involves several parties, including a driver to take the parts to a terminal where they’re handed off to a long-haul trucker. During this time, if the parts are stolen and the trucker’s policy excludes payment for the loss then your contingent cargo insurance policy will likely have to pay the claim.
Most businesses have a difficult time bouncing back from these types of losses when under-insured or for lack of insurance, unless they have a contingent cargo liability policy in place. The policy not only enhances and protects your relationships with your customers, it also protects your assets and the reputation of your business.