Ocean Cargo & Inland Transit
Ensuring product safety through the supply chain can be a challenge. For manufacturers, e-commerce businesses and product based companies utilizing foreign manufacturers/suppliers, ocean cargo insurance is a necessary, integral part of your insurance portfolio. Often when product damage is discovered, it can be concealed making it difficult to determine at which point in the supply chain the damage actually occurred and which party is at fault. Metal manufacturers may discover their product has arrived with rust or a food and beverage retailer may discover their product has simply spoiled. Partnering with a independent broker and carrier with a strong reputation can avoid “finger pointing” coverage disputes. Considering the implications of selling potentially impaired property such as a bodily injury claim from an injured customer effectively highlights how a 1st party loss for financial damages can quickly result in 3rd party litigation. This further demonstrates the importance of a wholistic insurance program (including product liability and recall when needed) and highlights the importance of proper loss prevention measures and a strong quality assurance program. As important as it is to partner with an experienced brokerage, it is equally important to partner with carriers that have strong claim reputations. Often these carriers can provide valuable loss prevention consulting to help ensure safe transport and decrease loss frequency. While some companies may choose to insure their cargo through a freight forwarder, there are a number of often overlooked advantages to coordinating your insurance through an independent brokerage such as GB&A, including:
- Carrier Strength & Reputation: GB&A partners with only A rated carriers with "best of class" reputations including Chubb and more.
- True "Warehouse To Warehouse" coverage to avoid coverage disputes for concealed damage
- Generally broader coverage with increased coverage endorsements.
- Program Control: If the freight forwarders insurance is cancelled you may find your cargo uninsured
- Claim control: When insuring cargo with a freight forwarder you may not have control during the claims process
- Pricing Independence: When issuing coverage through a freigh forwarder, often times your premium is subject to losses from other shippers in your "pool"