Recognizing that your customers are what ultimately drive your business, one of the key questions for many Freight Brokers is “how can you make yourself more marketable to Shippers?” The basics of self-marketing 101 in the transportation industry include Cargo protection, General Liability protection and Auto protection. How about ensuring that you have a supplementary indemnity in place (at least $25K)? It’s worth considering. These small investments can yield significant increased opportunities.
Most people believe insurance is about protection. And at its very core, it certainly is. Yet, have you considered how it can grow your revenues? We have seen insurance coverage increase revenues by making Freight Brokerages more marketable to Shippers, as just one example.
Time and time again, it seems to come back to the basics of 1. Cargo protection 2. CGL protection 3. Auto Protection. We see contractual demands. We see companies realizing they want protection and others realizing they want to be more ‘marketable’. These are the three keys. We have been suggesting more of the Shipper’s Interest Cargo to help address concerns of how a trucker’s policy may fail to pay or fail to pay timely or fail to pay all of the losses incurred. So, use the Shipper’s Interest!
The most recent case study that comes to mind involved our team at PFA helping customers garner new business. Special cargo demands (coverage for commercial hemp loads) were successfully protected and a contract to haul was secured.
In that scenario, ask yourself this: What are your potential shipping opportunities and prospects going to ask of you?
For one, Contingent Cargo is a common request due to Shipper’s expectations. Other common demands from Shippers include Commercial General Liability, some form of an Auto coverage, Work Comp, and Umbrella (excess limits). Our Insurance Advisors can guide you on special insurance requirements and coverage provisions. Maybe you can start by controlling exposures in contracts and by implementing a ‘best practices broker carrier agreement’?
Another unique differentiator could be obtaining a ‘supplemental indemnity’ for Shippers that want to see an amount greater than the $75,000 surety (BMC-84 or BMC-85) requirement established by the FMCSA.
Give us a call. Ask some questions. Tell us your story. We’ll ask you some questions. It’s all part of finding ways to help grow your business.
As always, we’re not only here to “Protect Your Business.” We’re also here to “Ensure Your Success”…in 2020 and beyond!
PFA Transportation Insurance & Surety Services