Five important nuances in the contracts of liability insurance of forwarders

Liability insurance of freight forwarders, unlike conventional insurance policies real estate, inventory, equipment, goods, transportation or even other types of liability, less common and more specific form of insurance coverage.

On Ukrainian market there is a limited choice of insurance companies willing to assume the risks associated with reimbursement of losses to freight forwarders. Each potential forwarder-insured always gets under the careful consideration of the services of the insurer for any history of insurance claims in the past. It has a fairly logical explanation — high level of loss for this type of product.

According to the statistics, depending on the insurer’s loss ratio (the ratio of collected premiums on contracts of insurance of responsibility of carriers, and the amount paid thereon reimbursements) varies in the range of 80-95 %. Some insurance companies are forced to refuse insurance of freight forwarders, while others still are able to block high level of payments for losses due to imposing of premiums for cargo insurance.

Given the above, it is not surprising that insurance contracts differ significantly between insurers. Therefore, when choosing an insurance partner definitely recommend to read in the first place, the terms of the policies, and not focus solely on the offered price. What you should consider when comparing the key parameters of insurance contracts “All” or named risks. As well as in property insurance, the liability of the freight forwarder can be covered by the insurance contract as a whole (except for the list of specific cases in the agreement) and to be limited to a specific list of events, such as accidents, fire, burglary etc. of Course, the so-called “all risks” policy is preferred in the context of the volume of the coating. The reference to the fault of the driver. This is one of the most common stumbling blocks. In some contracts this is the point, spelled out clearly, while others not. Have in mind that if a driver involved in an accident resulting in damage to the transported valuables, it is not necessary that the insurance company will be obliged to cover the damage by default. Sometimes insurance is only the case when the accident happened through the fault of the driver of the carrier. Therefore, this aspect is additionally important to speak with the insurer and display a coherent version of the contract. Theft while driving a vehicle. All the General insurers is that the insurance case is considered to be only the loss of cargo with traces of burglary of a vehicle. Ie, if the appointment arrives a desolate truck with intact seals, to receive insurance compensation should not count. In 99% of cases the loss is due to fraud or collusion with the driver of the carrier. And this is a strict exception to the contract. Another question is whether all insurers are ready to cover a burglary on the move vehicle. Actually, not all. Many limit their liability to cases of theft during Parking of the car. Moreover, the requirements for the duration of the stay and the Parking lot is often clearly defined by the terms of the contract and must therefore be performed. Requirements to insurance coverage carriers. It is worth noting that some insurance companies set a higher level of deductible (part of loss which is paid by the company itself-insurer), if the carrier does not have its own insurance contract liability to a certain limit. So you should be careful in order not to miss such requirements in the text of the Treaty and, if it is acceptable, and to build relevant policy in relations with carriers. The age of vehicles. We are talking about the fact that most insurers still impose clear restrictions on the limit age of vehicles, the carriage of which fall under the coverage of the insurance contract. Another thing is that each insurance company has their own understanding of margins, and they often differ among themselves. If the fleet carriers are constantly acquiring only a few “wrong” car, then most likely the exception on the distribution to them of insurance coverage you can negotiate with the insurance company.

Finally, I note that openness in negotiations at the stage of negotiation of the insurance conditions, as well as careful study and make the necessary edits to the text of the contract of insurance is a sure way to in dealing with insurance cases and to avoid misunderstandings, and to receive payment in full.