Cargo & Liability insurance: How to ride the tightrope

Cargo insurance is the oldest type of insurance in existence, yet it’s often the least understood. Whether you are a transportation intermediary or a shipper, here are some cargo insurance buying tips from the unique perspective of an insurance insider.

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Do insurance underwriters rely on methodology and science to determine pricing or do they just pull numbers out of their hat? Actually, applying a rate to a risk is a combination of both.

Contrary to traditional lines of insurance, marine insurance does not rely on company published rate guides or state filed rates. Pricing is typically based on an insured’s loss experience, the relative risk, type of commodity, and geography. But at its core, pricing is ultimately based on the insurance company’s level of comfort with you and the risk.

So, if you want better pricing, work with your insurance provider to help make the underwriter feel as comfortable as possible with the risk.

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From the January 2018 Logistics Management Magazine Issue
Industry experts agree that costs across all sectors worldwide will continue to rise in 2018, and the most successful shippers will be those that are able to mitigate their impact on profitability. And, the right technology will play an increasingly vital role in driving efficiencies across the global logistics network.
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