How SPI can help
If you have a customer that requires additional insurance, above the carrier cargo insurance, for added protection you can send a request to insurance@spi3pl.com. For information regarding our insurance program please review .
understanding cargo insurance
What does a Carrier’s Cargo Insurance cover?
SPI’s research has discovered that shippers and cargo owners often assume that their freight is insured against damage once they possess a copy of the Carrier’s (Motor Truck) Cargo Legal Liability Insurance Policy naming them as the certificate holder. In an effort to dispel the myth surrounding Motor Truck Cargo Legal Liability, the insurance that trucking companies are impelled to carry, SPI has undertaken to put together the following overview for your enlightenment.
Motor Truck Cargo Legal Liability
Each State/Province within the USA and Canada protects the truck operator by limiting their liability to the owners of the cargo they carry.
A truck operator is not obligated to pay a claim against damage. In fact, the truck operator may not admit liability/fault or their Cargo Legal Liability policy could be voided. If the carrier’s Insurer denies a claim the carrier may elect to pay damage claims out of pocket, when they stand to gain from so doing; for example, if by paying for the damages they will continue to get business that will compensate them for the loss of profit.
A truck operator is not obligated to pay a claim against damage. In fact, the truck operator may not admit liability/fault or their Cargo Legal Liability policy could be voided. If the carrier’s Insurer denies a claim the carrier may elect to pay damage claims out of pocket, when they stand to gain from so doing; for example, if by paying for the damages they will continue to get business that will compensate them for the loss of profit.
Physical Damage Cargo Insurance
Protects the owner of the cargo from all risks of physical loss or damage from an external cause while the cargo is in transit.
Claims are paid directly to the cargo owner, for the full declared or invoiced value of the goods, within approximately 60 days after the Insurance Company receives all the required documentation from the insured cargo owner. It is then the responsibility of the Insurance Company to pursue subrogation against the Carrier.
Claims are paid directly to the cargo owner, for the full declared or invoiced value of the goods, within approximately 60 days after the Insurance Company receives all the required documentation from the insured cargo owner. It is then the responsibility of the Insurance Company to pursue subrogation against the Carrier.
Providing a Service:
Realizing that many of our customers were not fully aware of their insurance risk when transporting their goods, SPI undertook this responsibility. Then, to fill the perceived need SPI secured a Physical Damage Cargo Insurance Policy with Eagle Underwriting Insurance Group Inc. Through this policy, owners of cargo may elect to purchase coverage from SPI’s representatives at competitive rates. This service is only offered as part of SPI’s effort to provide its clients with a full range of transportation services.
Please note: SPI is not an insurance company nor is it a truck operator.
Please note: SPI is not an insurance company nor is it a truck operator.
The Benefits of Physical Damage Cargo Insurance
Purchasing this coverage will:
1. Provide better protection for the cargo owner.
2. Ensure adequate coverage on the value of the cargo, including the cost of transportation.
3. Provide the claimant with expertise facilitating the claim.
Important:
• The bill of lading as a contract of carriage must note shortage/damage etc. to support a claim. A clean signed proof of delivery or bill of lading can compromise a claim causing it to be denied by the carrier or insurer.
• Shippers and owners of cargo that do not purchase additional insurance should understand that either they are self-insured, or the motor carrier’s limit liability (as noted on the bill of lading) applies and that no other insurance is in place to insure their goods.
• Generally speaking, we can facilitate insurance coverage for most commodities however, special conditions may apply.
• Some commodities must be referred to an Underwriter for approval.
• Shipments valued over $250,000 must be referred to an Underwriter for approval.
Please note: For shipments referred to an Underwriter for approval please allow 2-3 business days.
1. Provide better protection for the cargo owner.
2. Ensure adequate coverage on the value of the cargo, including the cost of transportation.
3. Provide the claimant with expertise facilitating the claim.
Important:
• The bill of lading as a contract of carriage must note shortage/damage etc. to support a claim. A clean signed proof of delivery or bill of lading can compromise a claim causing it to be denied by the carrier or insurer.
• Shippers and owners of cargo that do not purchase additional insurance should understand that either they are self-insured, or the motor carrier’s limit liability (as noted on the bill of lading) applies and that no other insurance is in place to insure their goods.
• Generally speaking, we can facilitate insurance coverage for most commodities however, special conditions may apply.
• Some commodities must be referred to an Underwriter for approval.
• Shipments valued over $250,000 must be referred to an Underwriter for approval.
Please note: For shipments referred to an Underwriter for approval please allow 2-3 business days.
Working for you
We continuously pursue excellence - building enduring relationships with the People we serve: agents, shippers and carriers, we are also committed to providing them with exceptional service.
We continuously pursue excellence - building enduring relationships with the People we serve: agents, shippers and carriers, we are also committed to providing them with exceptional service.
Cargo insurance faq's
Damage Cargo Insurance
Purchasing this coverage will:
1. Provide better protection for the cargo owner.
2. Ensure adequate coverage on the value of the cargo, including the cost of transportation.
3. Provide the claimant with expertise facilitating the claim.
Cargo Insurance FAQ’s
What does Cargo Insurance cover?
Cargo Insurance covers loss and/or damage of cargo while it is in transit between the points of origin and final destination.
Why do I need Cargo Insurance?
During transportation, goods can get damaged or lost for a variety of reasons. If something does happen to the cargo, there are three outcomes:
1. The owner of the goods does not receive any compensation for loss or damage to their shipment if the carrier is not legally found responsible or the carrier denies responsibility for the damages or shortages.
2. The owner of the goods is limited by standard terms and conditions of the bill of lading that may not cover the full value of the goods transported (i.e. $2.00/lb).
3. The owner of the goods limits their loss by insuring the shipment.
It is in the best interest of the cargo owner to purchase insurance that guarantees full value coverage beyond liability.
How does purchasing Cargo Insurance through an SPI Representative help my company?
While the insurance world can seem complex and intimidating SPI can help to;
For more information on obtaining Cargo Insurance on your shipment, please contact your SPI Representative.
Please Note: The bill of lading as a contract of carriage must note shortage/damage etc. to support a claim. A clean signed proof of delivery or bill of lading can compromise a claim causing it to be denied by the carrier or insurer.
Working for you
We continuously pursue excellence - building enduring relationships with the People we serve: agents, shippers and carriers, we are also committed to providing them with exceptional service.
Purchasing this coverage will:
1. Provide better protection for the cargo owner.
2. Ensure adequate coverage on the value of the cargo, including the cost of transportation.
3. Provide the claimant with expertise facilitating the claim.
Cargo Insurance FAQ’s
What does Cargo Insurance cover?
Cargo Insurance covers loss and/or damage of cargo while it is in transit between the points of origin and final destination.
Why do I need Cargo Insurance?
During transportation, goods can get damaged or lost for a variety of reasons. If something does happen to the cargo, there are three outcomes:
1. The owner of the goods does not receive any compensation for loss or damage to their shipment if the carrier is not legally found responsible or the carrier denies responsibility for the damages or shortages.
2. The owner of the goods is limited by standard terms and conditions of the bill of lading that may not cover the full value of the goods transported (i.e. $2.00/lb).
3. The owner of the goods limits their loss by insuring the shipment.
It is in the best interest of the cargo owner to purchase insurance that guarantees full value coverage beyond liability.
How does purchasing Cargo Insurance through an SPI Representative help my company?
While the insurance world can seem complex and intimidating SPI can help to;
- • guarantee that the owner of cargo has protection against all risks of physical loss or damage to freight.
- • provide a competitive premium rate and/or a more favourable deductible amount.
- • bring comfort to know you have an excellent resource and partner if a claim comes along.
- • propose an insurance premium directly related to the value of goods sent.
- • assure good customer service following loss/ damage with claims handled within approximately 60 days.
For more information on obtaining Cargo Insurance on your shipment, please contact your SPI Representative.
Please Note: The bill of lading as a contract of carriage must note shortage/damage etc. to support a claim. A clean signed proof of delivery or bill of lading can compromise a claim causing it to be denied by the carrier or insurer.
Working for you
We continuously pursue excellence - building enduring relationships with the People we serve: agents, shippers and carriers, we are also committed to providing them with exceptional service.
HOW TO PROCESS A CARGO INSURANCE REQUEST
Please find attached, our new rate schedule for cargo insurance. To process insurance please submit requests to insurance@spi3pl.com and allow 24 hours for processing.
1. Provide your customer with a quote using the attached rate schedule (Actual Cost + Recommended SPI Insurance Processing Fee). For example, the customer’s cargo is valued at $10,000, the freight cost is $5000, they are looking to insure general goods with no deductible.
*Please remember the above-mentioned insurance processing fee is only a recommendation, the final decision would be yours to decide what you want to charge your customer for processing the insurance request. Having a set processing fee will ensure consistency to your customers without having to review each quotes fee.
2. Email insurance@spi3pl.com that you would like to process a request. Provide the following information:
1. Provide your customer with a quote using the attached rate schedule (Actual Cost + Recommended SPI Insurance Processing Fee). For example, the customer’s cargo is valued at $10,000, the freight cost is $5000, they are looking to insure general goods with no deductible.
- Calculate insurance cost: $15,000 *0.085/100 = $12.75 is the actual cost of insurance.
- Recommended SPI Insurance Processing Fee for insurance under $100 = $30
- Recommended SPI Insurance Processing Fee for insurance over $100 = $45
- Final quote amount would b: $12.75 + $30 = $42.75
*Please remember the above-mentioned insurance processing fee is only a recommendation, the final decision would be yours to decide what you want to charge your customer for processing the insurance request. Having a set processing fee will ensure consistency to your customers without having to review each quotes fee.
2. Email insurance@spi3pl.com that you would like to process a request. Provide the following information:
- * SPT
- * Description of product
- * Confirm if professionally packaged
- * Insured value (freight and cargo)
- * Owner of policy (typically the customer)
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