We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • ::COVID-19 COVERAGE::
  • INDUSTRY PRESS ROOM
  • ABOUT
  • CONTACT
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC.
    • Podcast
    • Blogs
      • Analytics & Big Data
      • Best Practices
      • Dispatches
      • Empowering Your Performance Edge
      • Logistics Problem Solving
      • One-Off Sound Off
      • Public Sector Logistics
      • Two Sides of the Logistics Coin
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • MODEX 2020
    • Upload Your Video
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC.
    • Podcast
    • Blogs
      • Analytics & Big Data
      • Best Practices
      • Dispatches
      • Empowering Your Performance Edge
      • Logistics Problem Solving
      • One-Off Sound Off
      • Public Sector Logistics
      • Two Sides of the Logistics Coin
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • MODEX 2020
    • Upload Your Video
Home » Do you really understand cargo insurance?
post-conference report

Do you really understand cargo insurance?

October 1, 2009
Toby Gooley
No Comments

Many logistics and transportation managers assume that their service providers' insurance will adequately cover their shipments in case of loss or damage—a dangerous assumption that can leave them with a hefty and unexpected financial liability.

Carriers, third-party logistics companies, and warehouses do carry insurance, and they are subject to various degrees of liability for the cargo they handle. But they buy policies that protect themselves, not their customers, warned James H. Nerger, a vice president with the insurance company Roanoke Trade Services Inc. Nerger gave this advice during a panel discussion on "Using Cargo Insurance to Uncover Hidden Risks" at the Council of Supply Chain Management Professionals Annual Global Conference. "Liability is not insurance," added Theresa Garcia, also a Roanoke VP. "That is protecting [carriers] against their own negligence. It is not insuring your cargo."

That may have been the most important lesson attendees learned in the session, but there were many more. Here is just a sample of what the panel of four insurance executives shared with the audience:

  • Brokered freight can be subcontracted. Make sure insurance coverage still applies when an additional party is involved.
  • "Warehouse to warehouse" coverage ends with delivery at the receiving warehouse. If freight will be stored for even a short time, get coverage for storage and staging.
  • Shippers often buy inadequate insurance based on incorrect or outdated assumptions. This typically occurs because of a lack of communication between those who are responsible for arranging coverage and those who know the shipment details.
Transportation Transportation 3PL
KEYWORDS Roanoke Trade Services Inc.
  • Related Articles

    You know you want ERP, but do you know why?

    Loadsure and Kleinschmidt Partner to Deliver Per-Load Cargo Insurance to Carriers and Freight Broker

Contributing Editor Toby Gooley is a writer and editor specializing in supply chain, logistics, and material handling, and a lecturer at MIT's Center for Transportation & Logistics. She previously was Senior Editor at DC VELOCITY and Editor of DCV's sister publication, CSCMP's Supply Chain Quarterly. Prior to joining AGiLE Business Media in 2007, she spent 20 years at Logistics Management magazine as Managing Editor and Senior Editor covering international trade and transportation. Prior to that she was an export traffic manager for 10 years. She holds a B.A. in Asian Studies from Cornell University.

Recent Articles by Toby Gooley

Better together

Rightsizing your forklift fleet in uncertain times

National Forklift Safety Day 2020 focuses on safety best practices

You must login or register in order to post a comment.

Report Abusive Comment

Most Popular Articles

  • Walmart launches plan to build micro-DCs inside dozens of retail stores

  • Relaxed regulations for drone parcel delivery to take effect in March

  • Gartner survey signals increased investment in resilience over the next two years

  • Increasing Urgency for Vaccine Supplies Drives Launch of New Vaccine Manufacturing Resources on Thomasnet.com

  • What Level of Automation is Right for Your Warehouse?

Now Playing on DCV-TV

7d82a38f f300 4f37 aac7 93ec8a60c08a

Heads Up: Your CEO Could be Calling!

DCV-TV 4: Viewer Contributed
The challenge on the table is how to make the best of a tumultuous transportation market. Watch this video to hear some tips to consider. Check out last week's 2MW: https://blog.tranzact.com/2-minute-warning/note-to-ceos-dont-blame-the-logistics-department OTR with Peter Tirschewell, from the Journal of Commerce...

FEATURED WHITE PAPERS

  • Time to rethink your lift truck power

  • Warehouse Management System Project Toolkit

  • Solving Talent Management Challenges Now and In the Future

  • Shaping Up Last Mile Delivery to Surpass Customer Expectations

View More

Subscribe to DC Velocity Magazine

GET YOUR FREE SUBSCRIPTION
  • SUBSCRIBE
  • NEWSLETTERS
  • ADVERTISING
  • CUSTOMER CARE
  • CONTACT
  • ABOUT
  • STAFF
  • PRIVACY POLICY

Copyright ©2021. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing