4 claims examples for transportation floater insurance

 January 17, 2022     UFG Insurance    Business  Read Time: 3 min
Goods being transported through a warehouse.

It's hard to find a company these days that doesn’t have goods or products on the move, thanks to the rise of the internet and supply chains. Maybe your company is shipping finished goods to customers in far-flung locations, or you’re waiting on inbound shipments from your distributors or raw material suppliers.

Whatever the situation, the smooth flow of goods and equipment is crucial for your business. It’s also unprotected by standard commercial property policies, which generally only cover goods and products at fixed locations. If something happens to your goods as they’re moving, they likely are not covered by any property policies.

That’s why your company should strongly consider transportation floater insurance. But first, how does it work?

What is transportation floater insurance?

A “transportation floater” is a type of inland marine insurance, which is the umbrella category for policies that help cover insured property wherever it goes, such as a job site or while in transit on the road. While the inland marine sector encompasses a wide range of use and coverage types, such as builder’s risk and tool and die coverage, transportation floater insurance is specifically focused on protecting high-value or unique goods while they’re on the move, whether by truck, train or plane.

A transportation floater can cover goods you are shipping to others or goods being sent to you. The policy may be held by your company or the company hired to transport your goods. It may cover all risks facing your shipment or it may be written to address specific risks and exclude all others.

How does a transportation floater work in real life? Here are a few claims examples for transportation floater insurance:

Four claims examples for transportation floater insurance:

  1. Mishandled shipments: The logistics company you hired to transport your temperature-sensitive materials to their final destination reports that the refrigeration unit went out on one of their trucks, rendering the shipment unusable by the customer. The logistics company’s transportation floater could pay you for the value of those goods.   
    Note: Subject to extension of spoilage coverage. 
  2. Goods destroyed in transit: Your company’s truck strikes a tall curb and rolls over enroute to your warehouse. Fortunately the driver is safe, but the accident destroyed both the truck and all of the newly manufactured products inside. Your transportation floater could cover damages related to the lost goods while your company’s commercial auto policy would help cover the truck.
  3. Goods damaged in transit: A fire breaks out at your logistics company’s warehouse, resulting in smoke and water sprinkler damage to your important cargo as it waited for its train. Your transportation floater could cover the cost to replace damaged goods in the shipment. 
  4. Stolen goods: The professional photography and film equipment you purchased is stolen from the shipping company’s truck before it can be delivered to your studio. Your transportation floater policy could help you pay to replace it.
There you have it! Those are our top four claims examples for transportation floater insurance. Considering all the things that can go wrong as your products move from point A to B, transportation floater insurance is a solid investment for most companies—especially those buying or selling high-value goods.

When you’re ready to explore transportation floater insurance for your next shipment, UFG Insurance is here to help. Find an agent near you today for help finding a solution tailored to your needs. 
 

The information provided is for informational purposes only. Every attempt is made to ensure that the information is accurate; however, it is not intended to replace professional advice. For more information, see Disclaimers & Other Legal Documents.