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.
image
By Rick Bridges, Contributing Editor
September 10, 2010 - LM Editorial

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 Department of Transportation’s Bureau of Transportation Statistics (BTS) reported this week that U.S. trade with its North America Free Trade Agreement partners Canada and Mexico in January dropped 1.2 percent to $89.3 billion.

Download our new white paper, "The ABCs of HST: Understanding the Harmonized System of Tariffs," for insights and explanations of the complex cross-border classification codes.

In today's supply chain, the only constant is change. Our white paper 'Change Your Perspective: Four Keys to Effectively Adapting to Rapid Change in the Distribution Center Environment' provides key insights on not only adapting to trends, but which trends will enable you to achieve running the warehouse of the future.

Despite great strides in mechanization and technology, many U.S. ports and terminals remain challenged by political conflicts, internecine competition, and internal communication issues.

Navis World 2015 welcomes record crowds to examine technological solutions to port congestion

Comments

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


© Copyright 2015 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA