You want to be vigilant for unexpected situations that result in the financial ruin of your shipping business. The mistakes of your freight brokers can lead to lawsuits. Moreover, you must reimburse clients if their cargo gets lost or damaged during the trip. Adopting a shipping company insurance policy guarantees that your company can survive whatever storms come. Continue reading to find out more about shipping insurance.
| CoverWallet | NEXT (Best) | Thimble | Hiscox | The Hartford | |
|---|---|---|---|---|---|
| Per occurrence limit | $1,000,000 | $1,000,000 | $1,000,000/$2,000,000 | $300,000/$1,000,000 | $1,000,000/$2,000,000 |
| Aggregate limit | $2,000,000 | $1,000,000/$2,000,000 | $1,000,000/$2,000,000 | $300,000/$2,000,000 | $1,000,000/$2,000,000 |
| Products and completed operations aggregate limit | $2,000,000 | $1,000,000 | $1,000,000 | $1,000,000 | $1,000,000 |
| Advertising injury coverage aggregate limit | $1,000,000 | $1,000,000 | $1,000,000 | $1,000,000 | $1,000,000 |
| Tenant’s legal liability coverage limit | $100,000 | $100,000 | $5,000 | $100,000 | $1,000,000 |
| Waiver of subrogation included? | Yes | No | Included | Can be included | No |
| Hired/non-owned auto liability coverage included? | Yes | No | Excluded | Can be included | Can be included |
| Equipment breakdown floater included? | No | Yes | Yes | Can be included | Can be included |
Shipping companies will benefit from a general liability policy. This will protect the company from third-party claims like property damage and injury your business operations may cause. Common situations to use this coverage include:
Your shipping service injures a member of the general public who files a lawsuit to receive compensation for medical care
A customer slips and falls on your shipping company’s business headquarters while negotiating a contract
Look out for add-ons to your general liability policy, such as:
Marine liability insurance–Protects your business against damage or injury to your business property due to water-based incidents.
Inland marine insurance–Protects business property that’s transported over land. This can include equipment, products, and materials that got lost or damaged during the trip due to theft, fire, vandalism, and other covered perilsÂ
Shipping companies can get coverage limits of $1 million per occurrence and $2 million in aggregate.
No. However, you can find general liability insurance on international shipping that Hiscox underwrites. This doesn’t only cover claims due to covered perils in the US but those abroad.Â
| CoverWallet (Best) | NEXT | Thimble | Hiscox | The Hartford | |
|---|---|---|---|---|---|
| Per occurrence limit | $1,000,000 | $1,000,000 | $1,000,000/$2,000,000 | $1,000,000 | $1,000,000 |
| Aggregate limit | $2,000,000 | $2,000,000 | $1,000,000/$2,000,000 | $1,000,000/$2,000,000 | $2,000,000 |
| Name additional insureds? | Yes | Yes | Yes | Yes | Yes |
| Waiver of subrogation included? | Yes | No | Yes | Yes | No |
| Deductible | $500 | $500 | $500 | $500 | $500 |
Shipping companies will use professional liability insurance to protect them from costly mistakes, oversights, or negligence that result in a lawsuit. Examples include:
A shipping company sends a product to the wrong location and the client experiences financial losses
A client receives the wrong product through an oversight in the shipping system
Extended reporting period–An extended reporting period endorsement allows you to file a claim on a professional liability policy that has expired
Additional insured–Adds coverage to people or organizations not on the original insurance policy
Professional liability insurance for shipping companies will have limits that range between $250,000 and $2 million.
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| CoverWallet | NEXT (Best) | Thimble | The Hartford | Hiscox | |
|---|---|---|---|---|---|
| Building coverage limit (minimum) | $50,000 | $340,000 | $25,000/$500,000 | $35,000 | $25,000 |
| Contents coverage limit (minimum) | $50,000 | $35,000 | $25,000/$500,000 | $35,000 | $15,000 |
| Outdoor signs | Excluded | $2,500 | Excluded | Excluded | Included |
| Accounts receivable | Excluded | Excluded | $5,000/$10,000 | Excluded | Included |
| Money and securities | Excluded | $2,500 | $1,000 | Excluded | Included |
| Lock and keys | Excluded | $2,500 | Excluded | Excluded | Included |
| Business interruption floater | Excluded | Included | Included | Excluded | Included |
| Equipment breakdown floater | Excluded | Included | Excluded | Excluded | Included |
| Inland marine insurance floater | Excluded | Excluded | $10,000 | Excluded | Excluded |
| Employee dishonesty floater | Excluded | $5,000 | $2,500 | Excluded | Excluded |
Commercial property insurance protects your building and its contents from weather events, theft, or vandalism. Example situations include:
Someone breaks into your headquarters and steals your computers
A fire breaks out in your business offices and damages the property inside your building
Flood insurance–Protects your shipping company from the dangers of flood waters, which might be excluded by default from your policy
Pollutant cleanup and removal–This covers the cost of removing pollutants from land or water that has damaged your property
Commercial property insurance provides up to $60,000 worth of coverage for the building and $30,000 for the contents.Â
Yes, commercial property insurance will still apply to a commercial building you’re currently renting. In fact, the landlord may require you to purchase this policy before signing the lease agreement.Â
