The transportation industry is all about reliability. When cargo is lost, damaged, or delayed, the impact can be severe, affecting not just the shipment but the entire business. Without proper cargo insurance, companies face financial losses, damage to their reputation, and even the risk of losing important contracts.
Jason McConkey, the Director of Transportation Underwriting at Central Insurance, emphasizes the importance of cargo insurance in protecting fleets from unexpected risks. He notes that different types of cargo come with their own set of challenges, and having the right insurance can help maintain a business’s stability over time.
Every day, fleet operators encounter various risks. One significant concern is refrigeration failure. For example, if a refrigerated truck experiences a mechanical failure, the cargo can spoil, leading to financial loss and damage to a company’s reputation. Without appropriate coverage, the fleet operator bears the full cost of this loss.
Cargo theft is another major issue. Statistics show that a significant portion of cargo theft occurs at rest stops, where thieves target parked trucks. If a driver stops for the night and returns to find their cargo missing, the financial implications can be devastating.
Accidents also pose a risk. The Federal Motor Carrier Safety Administration reports around 1,300 rollover accidents involving tanker trucks each year, often resulting in spills. These incidents can lead to hefty cleanup costs and disruptions to operations.
To mitigate these risks, McConkey suggests several essential cargo insurance coverages. Motor Truck Cargo Insurance is fundamental, covering losses due to theft or damage during transit. Reefer Breakdown Coverage protects against losses related to refrigeration failures. Debris Removal Coverage can help with cleanup costs after an accident, while Earned Freight Coverage reimburses lost income when a shipment can’t be delivered for covered reasons. Lastly, Contamination and Spoilage Coverage helps cover losses from perishable goods that become unusable.
Central Insurance aims to provide tailored coverage that not only protects financial interests but also helps maintain customer relationships and business operations. McConkey highlights that protecting a company’s reputation is crucial for success.
For fleet operators, understanding these insurance options is vital. Central Insurance encourages businesses to consult with agents to find the right coverage that fits their specific needs and challenges.