May 13, 2021
The smarter way to secure shipper’s interest coverage
Don’t surpass your cargo limits for just one shipper. Rather, rely on UBI shipper’s interest coverage when the need arises
Semi trailers are able to haul a vast array of commodities. Though more or less identical, the trailers that crisscross our highways carry freight of all shapes, sizes and values.
Loaded trailers may be indistinguishable from one another, but not to insurance policies. Trucking companies keep a sharp eye out for payload discrepancies and are known to limit their liability significantly for high-priced freight.
Limits put a ceiling on the amount that a carrier will pay out on a load in the event that a claim is filed. Many opt to just increase their entire policy limit or rely on the saving grace of shipper’s interest policies to secure proper coverage. This scenario plays out daily for freight brokers, who find that closing loopholes and insuring the actual dollar value of a shipment is tedious work.
However, there is now a one-click solution for this crucial process.
Insurance and InsurTech leader Reliance Partners now offers utilization- or usage-based insurance (UBI) — a new way of quoting and securing coverage. Insurance can be booked on a per-load or per-day basis and distributed through a transportation management system (TMS) or load board with just a tap of the screen.
“One click is all that’s required to buy the coverage needed for a load,” said Micah Keith, Reliance Partners’ senior director of sales. “It really improves operational efficiency, reduces costs and mitigates risk on a pay-per-use basis; it’s a much smarter way of looking at coverage.”
Reliance Partners offers usage-based coverage for primary and excess auto liability, primary and excess cargo, truckload, less-than-truckload, trailer interchange and more for domestic, cross-border and international freight. Through application programming interface-enabled solutions, Reliance Partners can integrate directly into your TMS, allowing for instant insurance when you need it.
Keith points out that Reliance Partners’ UBI coverage is risk-inclusive, closes insurance gaps and covers virtually all commodities so long as it’s rated correctly.
“Not everyone is aware that their primary or excess cargo policy might not cover everything and that they have another option besides increasing their entire limit to work with one new customer,” Keith said, arguing that a brokerage doesn’t have to go well over $250,000 for all of its cargo limits, but instead can keep its normal limits and tack on shipper’s interest as the need arises. He suggests this strategy could save brokerages a lot of money while providing best in class coverage when needed.
Reliance Partners’ UBI rates are customized and structured based on each policyholder’s unique business needs. This increase in operational efficiency enables freight brokers, freight forwarders, carriers and shippers the freedom to expand their carrier networks with higher excess limits available as needed.