In today’s global and digitally connected economy, the logistics industry has seen growth year after year, but logistics insurance has been struggling to keep up, according to a whitepaper from Amwins Specialty Logistics Underwriters.
Titled The Logistics of Securing Logistics Insurance: What You Don’t Know CAN Hurt You, the whitepaper points out that logistics insurance has been “lumped in” with other types of insurance, such as cargo or ocean marine policies, which “run a greater risk for exposure.”
Amwins Specialty Logistics Underwriters (ASLU), an MGA focused on the complex risk factors of logistics and cargo insurance, however, is squarely focused on this niche. The company operates with a philosophy that a better model can be found simply by combining three factors: knowledge, flexibility, and service.
“This approach is a departure from the standard ‘one-size-fits-all’ mindset found in the market and requires attention to detail to navigate the complex risk factors of this evolving industry,” said Alex Rosas, executive vice president, Amwins Specialty Logistics Underwriters.
According to the whitepaper, the scope of insurance determined for a logistics operation is determined by, more than anything else, the types of services provided.
The most commonly used services provided by logistics operations include: international or domestic transportation brokerage; freight forwarding; custom house brokerage; non-vessel operation carriers; indirect air carriers; motor truck carriers; warehouse operators; and property brokers.
Overall, there are five main coverages which extend beyond the standard property and casualty insurance, and these include shipper’s interest ocean cargo and domestic transit; carriers legal liability; freight forwarder’s/freight broker’s legal liability; freight forwarder/freight broker errors and omissions; and warehouse legal liability.
When you combine all the types of freight forwarders with the types of coverage, it’s easy to see why the logistics space is often misunderstood. Fortunately, the ASLU team is rounded out by industry veterans who share Rosas’ passion for problem solving. “We believe complex risks like those found in the logistics industry require creative solutions, and that’s how we approach each day,” said Rosas.
He goes on to explain that, when it comes to logistics insurance, the lines of business that will apply to that operation depends on the particular company.
“There’s a lot of law involved, and the way you actually move things, depending on legal documents, could mean that you are either a carrier, a forwarder, or many other things, and that liability to each section applies differently. So, it requires a lot of research,” he explained, adding they never have two accounts which are exactly the same.
He noted that ASLU tries to mitigate risks by tackling each case on an individual basis (rather than forcing standard forms), and performing a holistic review.
“We take absolutely everything into account. That’s true for a $5,000 account or a $1 million account,” he said.
Ultimately, Rosas said Amwins takes its philosophy very seriously, and it is a key part of its approach.
“It is a true service-oriented approach. We are a boutique, not a factory. We try to maintain that level of personalized quality, which helps us be more nimble than the big guys,” he said. “That philosophy of a personalized service-oriented approach is the most important part.”
ASLU recently expanded its logistics program to Canada and will now provide coverage to all provinces. To find out more, visit amwins.com/aslu for more information.
