Borderless Coverage and it’s parent company, Reliance Partners, were recently featured in an article on FreightWaves discussing the cross border insurance gaps.
“By the time you get coverage that complies with the shipper’s requirements, you often still end up with high deductibles, and it probably doesn’t provide the level of coverage that you need,” Vickers said. “A lot of times it’ll only offer coverage in Mexico, although you really need primary cargo insurance from the moment of pickup in the United States until final delivery in Mexico because a lot of claims happen right at the border.”
Most shippers are not aware of these gaps until a claim occurs. With the high risk of hijackings and theft, this can be a catastrophic scenario for mid-sized shippers, and a costly lesson for larger shippers.
“In Mexico, it’s worse than the Wild West. What cargo owners don’t realize is that Mexican law only holds carriers liable for about 1 cent per pound of cargo, and it’s rarely enforced,” Vickers said. “That creates an enormous risk, especially considering the current rate of theft at the border.”