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Shipper’s Interest Insurance – FAQs
The Innovation of Shipper’s Interest Insurance
It is no secret that finding the proper freight insurance is not easy. When comparing policies, it is difficult to understand what is covered, what limitations exist, where the liability falls, and more. A one-size-fits-all policy is nonviable when it comes to freight insurance, but the flexibility provided by shipper’s interest insurance offers an insurance solution to fulfill the needs of any business.
Shipper’s interest insurance provides a policy that is able to increase coverage while reducing cost for businesses looking to structure the perfect policy for their goods. Before getting a quote, it is important to look into the details of this inventive insurance solution.
The Shipper’s Interest program created by Borderless Coverage Powered by Reliance Partners practically erases coverage gaps and simplifies the procedure in case of a loss or damage, all while reducing cost. Below is a list of questions and concepts that helps to capture the basic features of shipper’s interest insurance.
How does shipper’s interest insurance compare to the policy of the transportation intermediary?
Shipper’s interest insurance is a first-party product, meaning that the risk is transferred from the cargo owner to the insurance company. This product varies from the traditional third-party insurance wherein risk lies at the feet of transportation provider. A third-party insurance product also utilizes a motor carrier’s insurance policy that often fails to cover all commodities. A shipper’s interest first-party insurance policy forms a reimbursement process directly from the insurance company to the cargo owner, guaranteeing repayment.
What does shipper’s interest insurance cover?
Borderless Coverage Powered by Reliance Partners provides the broadest form of shipper’s interest cargo insurance available. This can be used for all commodities. Shipments can be multi-modal and the shipper can be based anywhere in the world. Shipments may pick and deliver anywhere in the world. Limits are set at $1,000,000 per shipment and limits can be raised up to $10,000,000 with additional underwriting. Shipper’s Interest ensures that coverage gaps are minimized to warrant the repayment of any sort of damages that prevail under the policy. Working with insurance experts at Borderless helps to clarify these fine details when structuring a shipper’s interest insurance policy.
How are rates determined?
It comes as a surprise to many that shipper’s interest coverage is relatively inexpensive. It can be obtained on a per load, project, or annual basis, which makes it super flexible for the insured. Rates are based on four main pillars: commodities, values, volume, and loss history. Once approved for the Borderless Coverage program, insureds are able to obtain automated quotes and bind on the spot. For projects and annual programs, Borderless is able to provide client-specific rates which are typically lower than spot rates because of the static nature of the business which allows for greater predictability of losses.
Where does the responsibility/liability fall?
Risk is pardoned from the carrier and transferred to the insurance company. This is ideal due to the avoidance of liability claims, legal consultation, or other disputes that frequently arise due to the coverage of Motor Truck Cargo (MTC) Insurance. MTC insurance often includes limitations and exceptions that allows for freight carriers to avoid the coverage of all damages or losses that may incur.
Can this coverage be supplemental to motor carrier’s insurance?
Shipper’s interest insurance is often utilized in addition to the insurance policy of the motor carrier for businesses looking to fully reduce coverage gaps. In this case, the commodities would be insured by both a first-party insurance group and a third-party carrier. If a loss or damage occurs and the third-party disputes the reimbursement due to the limitations of the policy, the first-party insurance group can be used as a fall back with a much simpler reimbursement process.
Domestic High value shipments and international shipments (especially shipments moving in and out of Mexico) are generally looked at as greatest benefactors to shipper’s interest insurance because of the broad nature offered by the product. Shipments can be transloaded at borders and across different modes and different motor carriers making it ideal for the international and high value shipper.
The ideal insurance policy is never employed, but when employed, is used to the fullest. Working with Borderless Coverage Powered by Reliance Partner’s team of experts to get a quote will help you find a plan that does this, covering everything you and your business need it to.
Schedule a call today:
borderlesscoverage@reliancepartners.com
440-724-1755