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.
Did you know up to 90% of cargo moved today is under- or uninsured?
The vast majority of cargo moved today doesn’t have adequate insurance. In fact, up to 90% of cargo is underinsured or not insured at all. This exposes your customers — many with thin profit margins — to the potential for unrecovered losses and threats to cash flow.
So what are the top reasons why shippers are willing to risk the financial impact of lost or damaged cargo?
Unclear carrier liability policies
Many shippers mistakenly believe their carrier liability policies fully protect their loads They don’t. Carrier liability only protects shippers from losses associated with provable carrier neglect — and they pay just a fraction of the invoice value.
Even if shippers are able to file a successful claim, they’ll wait an average 120 days to receive a settlement check. Meanwhile, they’re paying out of pocket for:
- Expedited replacement costs
- Supply chain interruption costs
- Damaged cargo storage
- Disposal costs
- And more
Traditional, per-load cargo insurance is prohibitively expensive for many SMBs
Traditional insurance processes are labor-intensive. That makes single trip coverage particularly expensive to underwrite, pricing all but the enterprise business out of coverage.
Traditional cargo insurance can’t keep pace with the speed at which the supply chain moves
While the freight industry has evolved to meet the needs of the on-demand economy, the insurance industry has lagged in its adoption of AI and automation tech. The result? Shippers are more likely to ‘chance it’ to keep up with the tremendous pressure to deliver on time
A better way to tackle the underinsurance crisis head-on
AI and automation technology is making it easier to get dynamic pricing and products to help you secure near-instant coverage. What’s more, it’s also driving down the cost of coverage — making single-trip cargo insurance accessible to every business.
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 it easy to protect customers from holiday spikes in cargo theft — even when it’s an inside job.
With Loadsure, you can:
- Get instant cargo insurance quotes — up to 80% than traditional coverage
- Get up to $2M in per-load, all-risk coverage in less than 40 seconds
- Cover commonly excluded commodities, like chilled beef, alcoholic beverages, and heavy machinery
- Protect against what carrier liability doesn’t — Acts of God, inside theft, and more
- Submit claims in minutes
- Settle claims in days, or even minutes
Deliver value-added service to the customers you care about and grow your business with Loadsure.