When your Shipper is requiring insurance, the best place to start is by carefully analyzing your Shipper/Broker Agreement. Risk management is an action that every transportation company needs to do constantly and consistently. In that light, transportation insurance provides a way to address risks and ensure you stay in business if an accident or loss occurs.
What problems might arise from contracts? Simply put, additional duties and obligations are imposed with potential costs that you had not expected. What might be in your Shipper contracts that places your company in an unfavorable position? A full review of your Shipper/Broker agreements and coordinating duties or obligations in your Broker/Carrier agreements is an activity you should do regularly as well. Even if the contracts were not modified, did any regulatory changes or case law precedents occur that possibly influence what you should have in your contracts? Keeping you properly aligned with the regulations, your contracts and your insurance program is an essential step to take in protecting your business and ensuring your success.
For more, take a quick look at Episode 8 of PFA TV.