Are You Covered If Your Insurer Denies Your Claim

If you are in the business of hauling freight, you understand the importance of carrying commercial trucking insurance.  What you may not know is that circumstances beyond your control may prevent your trucker’s insurer from paying or honoring a claim.  If you want to protect yourself against these circumstances, you must invest in Contingent Cargo insurance.  Relying solely on your trucker’s certificate of insurance could land you in hot water.  Make sure you protect your business and your customers from financially damaging losses and understand when contingent cargo insurance will kick in.  Once you understand gaps of insurance you face, you will understand why you need this unique type of coverage.

When Will Contingent Trucker Insurance Pay?

There are several different circumstances that will prevent a freight shipper from receiving payment for losses.  The most common scenarios include:

* The trucker goes out of business.
* Your policy is cancelled and you never received noticed.
* The insurer you pay goes out of business or becomes insolvent.
* The trucker has a high deductible they cannot pay.
* The trucker does not cooperate with the insurer and a claim is denied.
* The trucker does not take responsibility for the loss.
* The insurer does not respond to a claim.
* The insurer delays payment.

If any of these scenarios happens, you and your customers may be out of money and out of business.  Contingent Cargo insurance will address all of the unknowns, which may interfere with receiving a payment for a claim in a timely manner.

What to Look For In a Contingent Insurer

Contingent insurers cover all of the unknowns.  Because of this, you should do your homework when choosing a contingent insurer to ensure you do not experience unpaid claims even with the added protection.  Always choose a contingent insurer that is financially stable.  One of the reasons why primary insurers cannot cover claims is because they do not collect adequate premiums for the risk they are covering.  Contingent insurers must charge adequate premiums to stay in business.  If you cut corners and choose a company that is not financially stable, you may face an even more complicated situation.

It is your responsibility as a broker or freight hauler to review your insurance to ensure you have the right type of insurance to protect your business and your shippers.  If you have reviewed your insurance and you have covered all of your bases, the only other thing you can do to protect yourself is invest in contingent cargo insurance.  With a quality contingent policy, you can protect contingencies you cannot control.  Screen insurance carriers in the industry and purchase the right insurance policy for peace of mind.

 

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