Transporters should be preparing to look at their insurance programmes following changes to rules around the Carriage of Goods Act – but not necessarily until renewal time, according to one leading broker.
DIESELtalk has already reported that under the changes, the limited carriers risk limit is to rise from $1500 to $2000.
Aside from updating existing contracts and customer advice, Eamon O’Connor of O’Connor Warren Insurance Brokers says operators should be prepared to review their policy coverage and premium charges in this area at their next renewal date. O’Connor says that while insurers are accepting the increase in liability as a matter of course for now – they will certainly be reviewing things post the statutory changes and clients’ renewal.
“But this should be taken as a good opportunity to review your premiums and programme,” he says.
With the change of liability, there could be premium rises on the way for some, but that depends on the nature of the business.
“For a general carrier with a pallet cost of $7-800, there is likely to be little change,” he notes. “But for those that carry higher-value individual items such as technology goods, the increase in liability could impact.
“It is not known yet if the shift in premiums will be dramatic, and you can mitigate the situation.
“Speak to a good broker,” says O’Connor. “it is a competitive market, and some insurers may see it as an opportunity to get your business.”
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DIESELtalk would like to welcome O’Connor Warren to our industry supporters panel – a key group of businesses supporting the provision of DIESELtalk updates and news to the industry at no cost.
Director Eamon O’Connor can be contacted on 0800 26 46 26, or [email protected]
Article posted by Richard Edwards on DIESELtalk on February 28th, 2014