Discover how you can add value to your customers, reduce your business risks and stand out in the competitive logistics market by offering cargo insurance.*
With thousands of freight forwarders and logistics providers in Asia Pacific, it is a real challenge to stand out from the competition.
These days, shippers have numerous options at their disposal to move their freight around the world.
So how can you differentiate yourself from other transport operators? What should you do to attract new customers and keep existing customers satisfied with your services? Do you provide value-added services like cargo insurance? Do you incorporate cargo insurance as part of your process to reduce your business risks?
Freight liability vs Cargo Insurance
Let’s start by clearing up a common misconception – the difference between freight liability and cargo insurance:
Example of a total loss claim scenario
A freight forwarder was hired to arrange for a shipment of machinery valued at USD 50,000.
The shipment was received and upon further inspection, the machinery was found to be damaged. The shipper filed a claim against the freight forwarder.
|Without cargo insurance||With cargo insurance|
|Compensation limitation||Subject to the standard trading conditions, where limitations of liability and exclusions apply||Compensation is as per the policy of insurance.|
||Full settlement of USD 50,000|
Note: This total loss scenario is hypothetical in nature and for illustrative purposes only.
The benefits of cargo insurance
As explained above, offering cargo insurance is a real benefit for your customers as their cargo is protected from loss or damage during the freight movement process if an unexpected event happens.
Cargo insurance is vital for the following reasons:
Seamless cargo policy issuance
Today, you can have access to innovative cargo insurance platforms specifically designed for the transportation industry. As a transport operator, you need cutting-edge and efficient systems to respond to customers with speed and personalised services, especially in the event of cargo claims.
Marine cargo insurance web-based platforms can assist you to:
Having a fast and effective system for quoting cargo insurance is a key differentiator for your business.
Read more about how Chubb’s CargoAdvantage system can help you to offer a cargo insurance quote and cover for a shipment within minutes, or contact your local office to find out more.
* Offering cargo insurance in Australia may amount to provision of a regulated financial service. For further information, consider seeking legal advice.
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