Scope of Coverage

Types of Goods Covered 

Ensure the policy covers the types of goods typically transported, including any special categories like hazardous materials, perishable items, or high-value goods.

Geographical Coverage

Verify that the policy covers all regions and routes where the carrier operates, including international destinations if applicable.

Coverage Limits

Per Occurrence Limit

Understand the maximum amount the insurer will pay for a single incident or claim.

Aggregate Limit

Know the total limit of liability for all claims during the policy period.

Deductibles

Assess the deductible amounts and their impact on the carrier’s finances. Higher deductibles can lower premiums but increase out-of-pocket costs in the event of a claim.

Exclusions

Standard Exclusions

Familiarize yourself with common exclusions such as war, terrorism, inherent vice, and delay without physical loss or damage.

Specific Exclusions

Be aware of any exclusions specific to the carrier’s operations, such as certain types of cargo or routes.

Additional Coverage Options

For a comprehensive coverage consider optional add-ons depending on the nature of your business operations and magnitude of your risk profile.

Claims Process

Efficiency and Support

Evaluate the insurer’s claims process for efficiency and the level of support provided, including 24/7 claim reporting and dedicated claims handlers.

Documentation Requirements

Understand what documentation is needed to support a claim and ensure you can meet these requirements.

Policy Conditions

Contractual Obligations

Review any conditions or obligations imposed by the policy, such as specific security measures, maintenance of vehicles, and reporting protocols.

Policy Renewal Terms

Know the terms for policy renewal, including any conditions that might affect renewal terms or premiums.

Premium Costs

Understand how the premium is calculated, including factors like cargo value, type of goods, routes, and loss history.

Look for discounts or incentives for implementing risk management practices or maintaining a good safety record.

Regulatory Compliance

Ensure the policy complies with all relevant regulations and legal requirements in the jurisdictions where the carrier operates. Some regions may have specific insurance requirements for carriers.