Transportation Tuesday Tip #3: First dollar vs. contingent cargo policies

In our Transportation Tuesday series, we’re partnering with industry leaders to share tips on how you can improve your business success and growth. This week’s tip is brought to you by Loadsure. 

Tip #3: First dollar policies better serve customers than contingent cargo

You work hard to build your reputation as a freight broker that shippers can trust to get the job done. So it’s not much fun when you have to call them and report a loss.

This is where the difference between contingent cargo and first dollar cargo insurance policies can leave a lasting impact on your customers’ experience.

So, what’s the difference?

  • Contingent cargo insurance
    These policies protect your shippers from cargo loss. However, they don’t kick in until after the carrier liability insurance providers deny the claims  — a process that can take months.
  • First dollar cargo insurance
    These are also known as all-risk or shipper’s interest policies. First-dollar cargo insurance policies don’t require carrier liability denials to settle. The first-dollar insurance provider will immediately pay out the approved claim.

    This means you can accelerate your customers’ financial recovery from months to weeks through traditional insurance — and from months to days or even minutes through AI-powered insurance solutions.

Right now, as pandemic and supply chain disruptions make cash-flow more challenging, fast recovery is a big deal. Get your business-critical customers back on their feet fast, and you’ll keep them happy. And happy customers are far easier to retain.

Have a tip to share or want some advice?

If you want to share your own insight and be featured in our next Transportation Tuesday Tip or if you want us to dive deeper into a challenge you’re facing, email us at [email protected].  

About Loadsure’s first-dollar cargo coverage

Powered by AI and automation, Loadsure makes protecting the customers you care about fast and simple.

With Loadsure, you can:

  • Get instant quotes
  • Get per-load, all-risk coverage in less than 40 seconds
  • Submit claims in minutes
  • Gain real-time transparency into claims status
  • Settle claims in days or minutes 
  • Receive claim payments in minutes with direct deposit 

Just starting up a freight brokerage?

Loadsure can also ease your start-up costs. Instead of paying a large, up-front expense for an annual contingent cargo policy, you can instead pay-as-you-go — all while delivering better coverage. Find out how AI-powered, per-load coverage can help you retain your customers.