Subscribe to our free, weekly email newsletter!


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.
By Rick Bridges, Contributing Editor
September 10, 2010

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

MANAGING Risk: An Interview with Gary Lynch

Supply chain: What can supply chain executives learn from the Iceland volcano?

Improving import/export operations: How to hit a moving target

About the Author

Rick Bridges
Contributing Editor

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!

Recent Entries

The Pacific Maritime Association (PMA), representing employers at 29 ports, and the International Longshore and Warehouse Union (ILWU), which represents 20,000 dockworkers, have come to a tentative agreement on a key issue in ongoing contract negotiations.

Diesel prices continued their ongoing decline, with the average price per gallon falling 6.7 cents to $2.866 per gallon, according to data issued this week by the Department of Energy’s Energy Information Administration (EIA).

Unlike other shipping companies, the Postal Service is not implementing any new dimensional weight charges with this pricing proposal

Drewry is expecting the recent spate of freight rate volatility to continue.

For November, which is the most recent month for which data is available, the SCI came in at -3.2. While this is still entrenched in negative territory, it represents an improvement over October and September, which were -5.5 and -6.6, respectively.

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2013 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA