Trailer leasing firms are cautious of trusting their trailers to a freight dealer who doesn’t have property. In contrast to asset-based motor carriers, freight brokers usually can’t get the wanted insurance coverage protection to guard these trailers.
“There’s a strict auto legal responsibility and bodily injury insurance coverage requirement at many leasing firms, and insurance coverage markets haven’t been prepared to tackle this danger for an asset-less brokerage previously,” mentioned Graham Gonzales, vp of strategic accounts at Reliance Companions. Reliance is the nation’s fastest-growing and most numerous insurance coverage brokerage with a sole concentrate on the transportation house, specializing in annual insurance policies and usage-based options. “Reliance Companions and one among our trusted insurance coverage companions have created a product that may bridge that hole of legal responsibility.”
No contingent auto or main freight dealer auto coverage goes to cowl a fatality brought on by a leased trailer, and neither will a motor service’s insurance coverage. It is a gaping gap in protection for a freight dealer in possession of trailers that may’t be solved by conventional freight dealer insurance coverage packages.
Moreover, leased trailers want full bodily injury protection in case they’re stolen or broken. If 50 leased trailers, every price $40,000, are parked in so much and a twister rolls via, a 3PL could be on the hook for $2 million to the lessor.
With Reliance Companions’ leased trailer legal responsibility product, that total state of affairs is roofed by an annual premium that’s minuscule compared to the loss worth.
Trailer swimming pools additionally present reliable capability, and that may construct belief with essential shipper shoppers. That is very true throughout peak season and in high-demand lanes when freight brokers face capability shortage. With out entry to trailers when and the place they want them, freight brokers depart enterprise alternatives and income on the desk.
“An organization may very well be rising at a gentle tempo, however a constriction of capability may put them ready the place they’re not as worthwhile in sure lanes,” mentioned Gonzales.
Trailer legal responsibility protection solves this drawback. With it, freight brokers now have the flexibility to strategy leasing firms and fulfill the insurance coverage necessities essential to lease trailers and construct customized applications for his or her VIP shipper shoppers.
“It should change your total enterprise mannequin, managing a fleet of trailers versus customary brokering of freight, which is already an advanced and complex course of. The truth that you’d add property on high of that additional elaborates the method and it takes a devoted group to have the ability to handle that. Not easy, however very rewarding,” Gonzales mentioned.
Nevertheless, freight brokers who want a means to offer a better stage of service to shipper shoppers may see vital advantages.
“Whereas it may be powerful to handle many trailers all around the U.S., it might provide you with a really focused strategy to the shoppers that you simply actually need to work and develop with by being fully accessible to them,” Gonzales added.
When a shipper has extra masses to present out in a sure season, venture or time of 12 months, it might contemplate the dealer associate that already has bodily property at its amenities. It’s an apparent approach to keep high of thoughts for shipper shoppers.
“Increasing capability is enabling 3PLs to do enterprise at a better tempo, particularly as we’re in a bear trucking market. Issues are aggressive and it’s oftentimes a race to the underside on charges. Our shoppers which might be investing on this program and different diversified items of their enterprise are possible going to see a very large return, particularly when the financial system is again on the upswing,” Gonzales mentioned.
To study extra about Reliance Companions and trailer legal responsibility insurance coverage for freight brokers, click on right here.