People may not be physically shopping from one business to the next, but their goods are certainly being transported. According to logistics vendor Narvar Inc., Ecommerce order volume has increased nearly 47% in 2020. The increase in ecommerce drives shipping volume, thereby building a need for more drivers and a heightened awareness to protect cargo. In this post, we will review three topics to add to your cargo discussions to maximize benefits to your insured.
Loading and Unloading
In regards to cargo, insureds should always understand that much of their responsibility is defined in the bill of landing. When does their responsibility begin? When does it end? At times, it may even limit potential liability under a reduced bill of landing. Loading and unloading should always be a part of this conversation. Does a cargo policy cover damage to the cargo while loading or unloading? Not all cargo policies are the same and should be reviewed for specific wording in regards to this coverage.
Refrigeration Breakdown - A.K.A. Reefer Coverage
No, not that reefer. This coverage protects a policy holder from claims that may occur if a trucks' refrigeration unit malfunctions, thus causing spoilage of the cargo which is being transported. Few providers offer refrigeration breakdown because of the additional risk associated with properly transporting cold goods. Working with an E&S provider will allow you to obtain this necessary coverage.
We've all received that disheartening notification that our packages will not arrive due to "unforeseen circumstances". If you haven't received this type of notification, you're probably a wizard. This type of cargo can be covered if Earned Freight is added to your client's Cargo policy. Earned Freight covers the income lost when the cargo does not reach it's final destination.
We hope this rundown is helpful when reviewing cargo options for your insureds. Whether this coverage is rolled into your client's policy, or they're endorsements, we encourage you to closely review each policy for these important details.