Deductible question

[Michael Ludwig]

It all worked out in the end as far as the shipper and receiver were concerned and in the grand scheme of things that's all that matters. Winning the suit in Texas was icing on the cake

 

[Freight Broker]

There has never been a better example to show how valuable a Contingency Cargo Insurance Policy can be to a broker who finds himself in this type of sticky situation. Yes, it can be an added cost to your overhead, but oh boy…they can save you a ton of money when you run up against a reluctant carrier and his negligent insurer who refuse to honour a legitimate claim. Just like an American Express card, “don’t leave home without it”!

I sort of agree. And the very first thing my customer and the receiver wanted me to do was for me to go through my contingent cargo. I really didn't want that as this claim would likely result in my premiums being jacked up forever going forward. A 32K claim could thus cost me alot more than that over a span of 10 years or more. The way I look at it, having insurance is nothing more than a gate pass.. it allows one to gain access to some shippers. I've never put a claim in through my insurance and hopefully never will. Especially now with all the scams... every insurer is nervous today. I will continue to pay claims out of pocket and stick to relatively low value freight to mitigate risk.

 

[loaders]

Keep in mind that although your Contingent Cargo policy pays the claim, it is my understanding and from previous experience, that they are free to subrogate against the carrier and possibly recoup some of the loss, thereby reducing the negative effect it would have on your loss ratio.

 

[TRKINSURE]

I sort of agree. And the very first thing my customer and the receiver wanted me to do was for me to go through my contingent cargo. I really didn't want that as this claim would likely result in my premiums being jacked up forever going forward. A 32K claim could thus cost me alot more than that over a span of 10 years or more. The way I look at it, having insurance is nothing more than a gate pass.. it allows one to gain access to some shippers. I've never put a claim in through my insurance and hopefully never will. Especially now with all the scams... every insurer is nervous today. I will continue to pay claims out of pocket and stick to relatively low value freight to mitigate risk.

This post was so refreshing to read. A true professional, you handled this appropriately from the onset and didn’t take the “bury your head in the sand” approach. Good on you!
If we had more people like you in this industry I don’t think freight brokers would have the same negativity towards them.
I have room for another good client, if you’re looking for an equally resourceful insurance broker .

 

[Freight Broker]

This post was so refreshing to read. A true professional, you handled this appropriately from the onset and didn’t take the “bury your head in the sand” approach. Good on you!
If we had more people like you in this industry I don’t think freight brokers would have the same negativity towards them.
I have room for another good client, if you’re looking for an equally resourceful insurance broker .

Thank you! I may just take you up on that!

 

[loaders]

I have to admit, it is a bit funny for an insurer to heap praise on a company that basically self insures and pays claims out of pocket, and then encourage them to be a client. If Freight Broker wants to pay claims himself, that is certainly his choice (although in most cases, it definitely wouldn’t be mine) but if he does, why would he need an insurance provider? Oh, I know, to collect annual premiums without fear of there ever being a claim against the policy. Not a bad deal.

 

[Freight Broker]

I have to admit, it is a bit funny for an insurer to heap praise on a company that basically self insures and pays claims out of pocket, and then encourage them to be a client. If Freight Broker wants to pay claims himself, that is certainly his choice (although in most cases, it definitely wouldn’t be mine) but if he does, why would he need an insurance provider? Oh, I know, to collect annual premiums without fear of there ever being a claim against the policy. Not a bad deal.

I do need insurance in the event of that worst case scenario we all fear could happen. On the other stuff I’m strategic..I go after fairly low value freight and leave the MRI machines and the computers, furniture, etc alone. My freight is more along the lines of ball bearings, steel ingots, beams, etc.

I really don’t get that many claims. And generally the ones I do get are small and more along the lines of nuisance claims or the amount of the deductible that carriers refuse to pay themselves.

Btw.. my insurance premiums have gone DOWN over the last couple of years..lots of complaining has been going on here and elsewhere about premiums being jacked up or people being left without coverage altogether….all I can say is…that SUCKS…GLAD THAT’S NOT ME.