It may seem like single trip cargo insurance is only a solution for shippers; but for motor carriers, Brokers and TMS companies, it’s also a deal maker.
Read time: 5 minutes
While the many ways a shipper can benefit from spot insurance are easy to list and come quickly to mind, less obvious is the enormous value spot insurance can extend to brokers and motor carriers. Spot insurance, or single trip cargo insurance, provides brokers and motor carriers a way to satisfy critical insurance needed to obtain certain loads. As a TMS service provider, offering spot insurance on your website opens up a new realm of revenue potential because it enables brokers and motor carriers to bid on jobs that otherwise would be out of reach. Their new business wins translate to your gains.
The Spot Insurance Scenario
Quite often, a shipper’s goods are not completely covered by the motor carrier’s cargo insurance policy. This is because the standard cargo insurance coverage limit provided by most motor carriers is relatively low, at only $100,000 and is also attributed to fact specific circumstances arising with valuable cargo requiring an above average insurance limit. In addition, a less than truckload (LTL) shipment may need special coverage due to the heightened risks of carriage with multiple other shipments, with multiple changes of carriers, trucks, and terminals. No matter the reason, when the need for additional insurance arises, single trip cargo insurance can provide value and security to all parties involved.
Freight Brokers Can Use Spot Insurance to Salvage Deals
Brokers are only as good as the carriers available to them. When a potential load requires above average insurance limits, the available carriers are limited, and it becomes increasingly more difficult to secure business. This is where your TMS service is the solution. Providing brokers and carriers with an easy spot insurance option means they can readily secure new business. Single trip cargo insurance allows a broker to purchase additional insurance limits that they can use to supplement a motor carrier’s standard coverage limit — and win loads.
Motor Carriers Can Bid on Higher Value Loads
As insurance premiums continue to rise, many motor carriers are operating under lower policy limits in order to manage costs. Unfortunately, and ironically, these same carriers are then excluded from a range of valuable loads and opportunities because they are no longer eligible to service these loads because of their reduced policy limits. In short, motor carriers are having to decide between affordable insurance premiums versus the ability to obtain business. Fortunately, there is a solution to avoiding this precarious and destructive tradeoff. A motor carrier can use single trip cargo insurance to boost their limits on a per load basis, which in turn allows them to bid on load values that exceed their standard cargo limits, including highly desired full truckload (FTL) loads not otherwise in reach. Because insurance alternatives may be otherwise limited for motor carriers, your TMS site offering of spot insurance allows you to benefit from a largely untapped revenue stream.
The Pitfalls of Single Trip Cargo Insurance
Purchasing spot insurance has traditionally been a cumbersome process. For TMS clients with high volumes of higher value shipments, this process can be incredibly tedious and time-consuming. That’s because they often have to visit multiple sites to secure the exact coverage limit they need.
Furthermore, when a deal becomes available, brokers and carriers need to act fast when faced with a dynamic and increasingly competitive business environment. As a result, brokers and carriers often become discouraged from pursuing single trip cargo insurance and miss out on shipments valued in excess of standard cargo limits, costing them valuable opportunities for growth. If you can become a preferred business partner, by offering a next-level spot insurance alternative, your opportunities for growth expand too.
LogistIQ Has Your Solution
LogistIQ makes it easy for your TMS Service to offer online spot insurance, allowing you to quickly gain from a new source of revenue.
Freight Insurance Fast for TMS Companies provides quick and easily accessible spot excess coverage for freight shippers, freight brokers and motor carriers. Our policy is written on an all-risk loss or damage basis to best match your situation for the spot cargo insurance needed.
Best of all, our all-risk cargo insurance coverage is affordable. The cost for excess cargo insurance is based on the commodity being hauled, value of the load as well as the deductible selected.
Contact us today to learn how Freight Insurance Fast for TMS Companies can help your business grow.