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CARGO INSURANCE (HIGH VALUE LOAD)

Discussion in 'Insurance' started by ManU, Oct 23, 2015.

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  1. whatiship

    whatiship Well-Known Member

    Another factor to consider which is rarely discussed. Do you really want to put your driver in a position where he/she is alone and unarmed with the responsibility of million or multi million dollar load? I have heard of drivers robbed, beaten or killed for a lot less. When a load is that valuable somehow the bad guys seem to have their ear to the ground. Too many people know about it and a 10% finders fee for a multi million dollar score is easy money for making a quick phone call with the necessary info. Somehow we tend to think that as long as it's insured nothing can go wrong. Sadly, it does too often.
     
  2. Michael Ludwig

    Michael Ludwig Well-Known Member

    Interesting, and maybe you do want to move this to another thread ... however, you have a product onboard that is worth $1 million to the shipper, and they have you covering the complete cargo value. There is an issue somewhere along the line and the receiver refuses the product, the shipper makes a $1 million claim, and the carrier is stuck with it. Because those are the rules, the carrier gets to keep (salvage) the product. Now suppose there is some tech involved with the product. Can the carrier salvage/sell the included tech as well ???
     
  3. MikeJr

    MikeJr Moderator Staff Member

    I'm with Loaders, CargoCover is an excellent way to protect your customer, you even get a certificate you can send to them outlining all the details. When we cover shipments I like to send a copy to the carrier also to ensure they understand they are liable only for the first $2/lb. It saves shock when the driver arrives and there is a $1Mil on the BOL.

    $1000 or even $2000 for $1 Mil coverage is far from outlandish. I find it amazing how much time, money, R&D, and investment good companies make in their product then place incentives on the logistics 'team' to save $5 a load... The team in effort to hit savings targets source the service of 'questionable' carriers... Anyway, that's another topic for another thread I suppose.

    If you sell a $1 Mil product, you need to protect yourself from loss (once it leaves the dock, it's not in your care and control). Keep in mind many shippers HAVE COVERAGE once the freight leaves their dock - they just want you to pay in full if there's an issue.

    Keep well,
    Mike
     
  4. loaders

    loaders Site Supporter

    We've had good experiences with CargoCover. The premium is based on the declared value and works out to be a very small percentage of that number. The deductible can be negotiated and as a broker or a carrier, there is room for you to add on a "handling charge". I believe they are a subsidiary of Marsh Canada.
     
    ShawnR likes this.
  5. whatiship

    whatiship Well-Known Member

    Either the customer pays more for the extra insurance or you turn down the load, simple as that. $2.00 per pound is standard accepted liability which is what you base your rate on. If your drivers signs a bill of lading accepting a higher amount and the truck crashes and burns you are out of business if you do not have coverage. Driver training 101.
     
  6. rickwill

    rickwill Active Member

    I've run across this a couple times, called the insurance company to boost cargo coverage from $300,000.00 to $1 Mil and they wanted $1850.00 dollars for one time trip ( That's more than broker is willing to pay for load ) and the price to add this amount permanently was out-landish
     
  7. ShawnR

    ShawnR Site Supporter

    yeah get spike insurance for a one load instance.

    many insurance companies will offer this for a premium.
     
  8. ScottN

    ScottN New Member

    Why not ask your broker for a "trip transit" premium from your insurer?

    In my experience my clients customers are open to paying either all, or some of the extra premium involved to make sure the load is fully covered.
     
    chica123 likes this.
  9. Rob

    Rob Site Supporter

    I also get the customer to send an email stating we are on the hook for xx amount covered by our policy and they will look after the balance. Never can have to much of a paper trail in these instances.
     
    chica123 likes this.
  10. In addition to the suggestions mentioned below, if possible, have your driver arrive with a pre-printed waybill that clearly states your limited liability.
     
    chica123 likes this.
  11. Shakey

    Shakey Site Supporter

    wouldn't hurt to get your broker or insurance agent involved as well
     
  12. ManU

    ManU Member

    thank you lowmiler
     
  13. lowmiler88

    lowmiler88 Site Supporter

    If it is within Canada it is only $2 a lb unless they put the value on the BOL and your driver signs then you would be responsible for the whole amount. If you are crossing the border you would be on the hook for the whole amount, I would get a letter from your customers insurance company stating what you would be responsible for and what your customer has covered by insurance.
     
  14. ManU

    ManU Member

    I have a shipment moving next week with a value on the product of $2.6 million dollars. My suggestion to the customer will be for them to self insure and limit my liability to $2.00 per lb or $118000.00. Is there are a standard form I can have them sign prior to shipping outlining this agreement to cover me?
    Thank you
     

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