The pursuit of larger shipping accounts is a key driver for growth in the US freight brokerage industry. These shippers often represent significant revenue opportunities and long-term partnerships. However, securing their business requires more than just competitive pricing and reliable carriers. It demands a comprehensive understanding of their risks and the ability to offer solutions that mitigate those risks effectively. Contingent cargo insurance is one such powerful solution that can significantly enhance a freight broker’s appeal to these valuable clients.
Large shippers are often moving high-value goods and operating on tight margins. The financial impact of cargo loss or damage can be substantial, leading them to be particularly diligent in assessing the risk management capabilities of their logistics partners. While they likely have their own cargo insurance policies in place, they understand that gaps in coverage or disputes can arise.
By offering contingent cargo insurance, a freight broker provides an essential safety net for these shippers. It assures them that even if unforeseen issues arise with their primary insurance or the carrier’s liability, there is an additional layer of protection in place. This proactive approach to risk management demonstrates a level of care and responsibility that sets you apart from brokers who solely focus on the transportation aspect.
Presenting contingent cargo insurance during the client acquisition process can be a game-changer. It allows you to address a key concern of large shippers head-on and showcase your commitment to their financial security. Instead of simply promising efficient transport, you are offering a comprehensive solution that includes financial protection against potential losses.
This offering can be particularly compelling when dealing with shippers who have experienced cargo claims in the past or who are moving particularly sensitive or high-value goods. The peace of mind that comes with knowing their shipments have an extra layer of protection can be a significant deciding factor in choosing a freight broker. In essence, contingent cargo insurance empowers freight brokers to move beyond being just a facilitator of transportation and become a trusted partner in their clients’ overall supply chain risk management strategy, ultimately unlocking access to larger and more profitable shipping accounts.