Issue link: https://read.dmtmag.com/i/119598
By Tom Kelley By Pat Hull Cover Story Are You Really Covered? Don't Assume Cargo Insurance Is All You Need To Protect Your Property T he trucking industry is by far one of the quickest and most effective ways to ensure your freight reaches your customers. The U.S. Department of Transportation estimated that almost 70 percent of freight is transported by trucking, which makes it the most widely used method of transportation for goods. Despite the numbers, trucking safety remains one of the largest concerns for brokers and shippers. The reason – insurance. Don't be fooled. There are a number of misperceptions out there about cargo insurance which could negatively impact your business. Most truckers carry Motor Truck Cargo Liability insurance for the cargo they carry, but this coverage is often very limited. First off, trucker's insurance protects the trucker, not the cargo shipper. It will only pay if the trucker is legally liable for the loss or damage to the cargo. This is a terrifying prospect for shippers since they could be stuck with a huge revenue loss as a result of a single mistake. Additionally, policies often have limitations on the value of the load, type of commodity covered, time of day of loss, and whether the trucker was actually with the load at the time of the loss. It may also restrict or exclude coverage for theft or hijacking, not to mention that insurance is often determined by weight. Therefore, if you happen to be shipping microchips or another highly valuable good that does not weigh a lot then you might only get compensated for pennies on the pound. There have been hundreds of reported incidents in the past few years that highlight this problem. Many shippers have been forced to find alternative methods for transportation which are significantly more expensive. This hurts their bottom line and cuts into revenues. However, there's a new approach to insuring cargo that protects its value and covers the gap of any traditional insurance: Trip Transit Cargo insurance. Trucking is still the most effective way to get your goods from point A to point B and this new type of insurance can guarantee that shippers and brokers fully secure their cargo. This new product is designed specifically for cargo and ensures that the goods are covered. The reason for that is that the coverage is purchased by and in the name of the cargo owner and the trucker does not have to be liable for the loss or damage in order for claims to be paid. The leading provider of trip transit cargo coverage is FreightGuard (www.freightguard. com). This new service is essential for shippers and brokers to give them the peace of mind knowing that whatever happens – they will be fully covered. OO Patrick Hull is the CEO of Phull, LLC which owns FreightGuard. He can be reached at pat@phullholdings.com. He is also the author of "Lessons from an Entrepreneurial Life" on Forbes.com which can be found here: http://blogs.forbes.com/ patrickhull/. / Owner operator/April 2013 / / 14 OO 0413 edit.indd 14 3/19/13 2:19 PM