Falvey Shippers Insurance is an official Provider Partner to PFA Transportation Insurance & Surety Services for 3PL Cargo Coverage Programs. Here is their take on Shipper’s Interest, the benefits to 3PLs and the upside of technology integration:
Shipper’s Interest Insurance provides cargo owners with door-to-door coverage of goods against all risks of physical loss or damage. The shipper is protected from financial loss, transferring the risk to the insurance company, without having to prove negligence. Shipper’s Interest Insurance is an excellent risk management solution for shippers, however, transportation intermediaries have just as much to gain as shippers and are positioned better for the procurement of these transactional policies.
Benefits for 3PLs
Transportation Intermediaries can better protect both their clients and their own business through a Shipper’s Interest Insurance program. Many small and medium-sized business supply chains do not have access to transactional all-risk cargo policies, so they look to their logistics provider to assist. This value-added service not only enhances the relationships with your clients, it provides an extra layer of protection when your carrier partners’ liability policy does not respond to a claim. As previously stated, the Shipper’s Interest policy does not need the shipper to prove any party’s negligence, which avoids legal action and keeps the intermediary as a neutral third party. Lastly, this coverage prevents claims being filed against the transportation intermediary or their contingent policy, saving on both internal and legal costs.
It’s important to note that Shipper’s Interest Insurance policies are non-standard—their limits, deductibles, exclusions, and more vary significantly from provider to provider. Always be aware of the policy terms and conditions as they may not be the best fit for your operations. Falvey Shippers understands that each client is unique which is why we have the ability to tailor a program to suit your needs. As a transportation intermediary, we’ll work with you to come up with the best coverage for your clients in order to help strengthen your relationships.
Shipper’s Interest Technology Integration
With the rise of digital brokering and increased use of Transportation Management Software, shipping operations are becoming more streamlined. Insurance should be no different. Falvey Shippers offers a lightweight integration, shipAssured, that’s designed with busy 3PLs in mind and is the most user-friendly solution in the industry. Streamline the insuring process and add customized, all-risk shipping insurance to any shipment by integrating directly within your existing shipping software—it’s fast, efficient, and hassle-free. Shipments can be automatically quoted and insured for their full value with a single click. The entire process is automated, so you never have to re-key data and can avoid unnecessary overhead — you just click it, ship it and forget it.
Source: Falvey Shippers Insurance, provider partner to PFA for 3PL Cargo Coverage Programs (10/10/2018).