Simplifying Cargo Transportation Insurance

All agents should explore the use of cargo transportation insurance in their portfolios. Many commercial clients benefit from obtaining their own shipping policies. It is simply good business. They save money and take control of their business by protecting their inventory. David Hugunine, the SIU Marine Practice Leader, leads us through the simple process of connecting customers with the right freight policies and endorsements so clients can reduce insurance costs and get only the coverage needed.

Identify the Customer

Who needs cargo insurance?  Anyone shipping goods, even if exclusively by a third-party carrier like UPS and Fed Ex.  Cargo insurance policies cover the full value of the shipment and is less expensive.

When determining if you have possible cargo insurance clients, David suggests, “Ask yourself one simple question. Do I have a commercial client portfolio with retailers, manufacturers, distributors or wholesalers?”  If yes, then you can round out your product offering by meeting their freight transportation insurance needs.  Many customers may think they get the best coverage from their freight forwarder relationship. However, David explains, “What many business owners don’t know is the high mark-up they are paying by not purchasing their own transportation policy.  Freight forwarders often have a 30 to 40% mark up or more. SIU can save them money just be cutting out the third-party provider.

Selling the Policy is Simple

David’s connections in the transportation underwriting community makes obtaining transportation policies easy.  David explains, “I can usually give an accurate quote with the answers to five simple questions.”

  • What is the commodity being shipped?
  • Location of commodity, from where to where?
  • What is the insurance limit they need?
  • What is the loss history, if any?
  • What are their estimated annual sales or estimated shipment amount per year?

“I can quote, bind, invoice and deliver the policy in 20 minutes.” David explains.

Why SIU?

SIU savings are more than just removing a middleman.  David’s experience gives him the ability to identify the exact endorsements needed based on the company’s needs.  He has more than 15 years of experience in ocean cargo and freight forwarder insurance.  He has the knowledge and the relationships with carriers and underwriters to get decisions and deliver quickly.

SIU offers ocean cargo policies which cover worldwide transit, warehousing and domestic transit. Rates and terms are open, so we can have a base ocean cargo policy with customized endorsements. The minimum premium is $1,500. SIU has the capacity to write policies up to $100 million per vessel.  Plus, agents will enjoy tremendous retention, because these policies are continuous until cancelled and this helps round out the overall account for the agent.

“I get the best possible scenario for the client, even if there are loss issues.”  David said.  “Often agents do not realize they have this product on their books, that the clients need it, nor how easy it is to quote.”

Contact David today at dhugunine@siuins.com or call him directly at 678.498.4550.