Contingent cargo insurance

Discussion in 'Freight Broker Forum' started by Rodd, Mar 13, 2013.

  1. Rodd

    Rodd Bobtail Member

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    Mar 13, 2013
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    Can anyone tell me who's the best contingent cargo insurance provider and how much i can expect to pay on $100K with $1K deductible , mostly dry freight
    I was quoted on Essex $1200 a year but when it got to signing the paperwork they raised the price at the last minute to $1769 which is nuts
    Thx in advance
     
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  3. Marlin46

    Marlin46 Medium Load Member

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    Hartford has a pretty good policy - rate is based on your revenues and volume you do. On the revenue it is typically based on a per $100 of gross revenue = $. Different insurance carriers have different rates however $1200-$1500 per year would be about standard for a samll brokerage. Is a shipper requiring this? Is that what is driving the request for it? $1769 would have included taxes and fees since Essex is a non-admitted insurance carrier - anyone such as Hartford, Travelers, Zurich, etc... is admitted and isnt required to collect the same taxes and fees. Just my .02.
     
  4. Rodd

    Rodd Bobtail Member

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    Yes, that was with the taxes ($200), downpayment $592.25, remaining 9 payments for $138.92 , 14.75% apr , don't know what to think about it
    The shipper does not require it but i'd rather be safe than sorry
     
  5. BigBadBill

    BigBadBill Bullishly Optimistic

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    You would be crazy to run a brokerage without it.

    And make sure that you have a policy that will defend you even if you get sued and the carrier has insurance in place. They can normally get you dropped but if you have to pay that is several years of premiums.

    I would also get GL insurance.
     
  6. wichris

    wichris Road Train Member

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    Read the exclusion real well or you'll find out that it pays the same as the carriers cargo.(driver error/neglect,owner/agent theft) You'll find on most that what they pay is far shorter list than the exclusions.
     
  7. Rodd

    Rodd Bobtail Member

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    Mar 13, 2013
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    I'll read exclusions, any opinions on AGCS Marine ?
    I got a pretty good quote on it but still waiting for excusion list
     
  8. wichris

    wichris Road Train Member

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    You need to find your balance between risk/pay. If you pay enough it will cover anything. Go cheap and it pays nothing. If it's in temp controled and you want to cover errors(wrong setpoint,ignore requirements on breakdown) it is very expensive. Or decks for improper securement.
     
  9. mcgoo422000

    mcgoo422000 Medium Load Member

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    I know landstar charges 1.75 per load for it if you don't have a million in cargo. Still cheaper than buying a million cargo esecially
    since I doubt I've hauled more than one or two loads worth over a 100g's for them and I been hauling less and less for them.
    They're a good starter company when you first get your authority. What most people don't realize if you have a million in liabilty and GL the insurance company is only going to pay a million total anyway. These stupid people think you have 2 milion in coverage and you don't .
     
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