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.
in the NewsState of Logistics 2016: Pursue mutual benefit ATA reports sharp decrease in Q4 truckload driver turnover rate Challenges remain in store for shippers, says FTR SCI report Florida East Coast Railway to be acquired by Grupo Mexico Cat Lift Trucks awards $5,000 scholarship to high school student More News
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.
See below for related articles
Subscribe to Logistics Management Magazine!Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your entire logistics operation.
Start your FREE subscription today!
5 Supply Chain Trends Happening Now 2017 Warehouse/DC Equipment Survey: Investment up as service pressures rise View More From this Issue