Insurance is extremely important for food transportation companies. Let’s look at few of the details that companies need to consider with respect to insurance requirements.
Insurance for Food Transportation Companies
When the topic of insurance for food transportation companies comes up, the underwriters need to consider many different details, such as the likelihood of damage to a shipment or a food truck refrigerator, the kind of product being shipped, trade lanes that will be travelled, the method of transportation, and the mode of transportation being used. In addition, the premium for the insurance, which depends on the loss history of the firm, needs to be taken into account.
Some of the variables are beyond the control of food transportation companies, but it is certainly possible to take certain steps to lower the premiums that you have to pay.
Use of Technology in Food Transportation Insurance
Freight forwarding companies have to take into consideration the different levels of the deductible for the insurance policy since it will directly impact the premium you have to pay. At the same time, you have to keep in mind that the deductible is an integral part of the total risk-cost analysis.
Opt for Security Monitoring
If you are affiliated with certain security monitoring organizations it can qualify you for a total or partial waiver of the deductible on specific types of losses.
Implement Loss Prevention Measures
By incorporating loss control procedures and policies, and employing devices like asset monitoring and tracking technology, food transportation firms will reduce their likelihood of goods arriving at the destination in a damaged condition.
Consider Risk Transfer Options
You can use risk transfer methods that allow you to shift the expense, transportation obligations, and risk of damage to or loss of cargo onto trading partners.
Maximize Chances of Subrogation
Carrier’s damage and loss liability increases when number of cargo transport packages or units are listed on the bill of lading. Moreover, the aim should be to look out for companies that are willing to provide greater liability limits.
Follow Total Disclosure Mode
The insurance company requires information about shipment preparation, your operations, logistics, and supply chain to produce informed underwriting. As a result, better pricing decisions can be made.
Limit the Values
You should aim to minimize the value of individual shipments that will be on single conveyances. In addition, it’s best to not buy insurance whose limits are higher than the anticipated value of the shipment.
Maintain a Positive Loss Record
The cost of the insurance premium will depend upon the loss history of food shipping companies Montreal, as well as the net amount of the deductible. Recovery from other parties responsible for damage and loss of cargo is also an important factor.
A Final Note
As we can see, there are many different factors that influence insurance premiums for food transportation companies. In addition to those mentioned here, you can consult our experts to find out even more about the technologies that are commonly used when insuring food transportation. All you have to do is get in touch with one of the experts on our helpline number and we will help you make sense of all the details.