January 27, 2017 | Errors and Omissions, Industry Insights
The Benefits of a Robust Cargo Insurance Management App for Logistics Service Providers
Offering your clients Cargo insurance to protect their goods against physical damage or loss while in transit is a valuable add-on service that helps you solidify your relationships. Having an on-line insurance application to automate the process of administrating your Cargo policy provides you with a number of key benefits, particularly with a system specifically designed for logistics service providers in mind. Roanoke Trade in developing CoverageDock™ provides clients with a number of benefits that go well beyond streamlining the process to report insured shipments and print out Certificates to clients. Our multi-faceted Cargo insurance management web application allows you to also use the system as risk management tool to augment compliance with U.S. sanction programs and corporate guidelines, reduce exposure to errors & omissions allegations, and manage claims.
The Office of Foreign Assets Control (OFAC) manages all U.S. sanctions and is responsible for administering and enforcing economic sanction programs primarily against countries and groups of individuals, such as terrorists and narcotics traffickers. The sanctions can be either comprehensive or selective, using the blocking of assets and trade restrictions to accomplish foreign policy and national security goals. All persons and entities within the United States including all U.S. incorporated entities and their foreign branches must comply with OFAC regulations. Failure to comply can result in significant fines and imprisonment.
Our integrated online Cargo insurance management system allows for screening against all shipments entered into the system for restricted individuals, companies, and countries in real-time. If the search reveals a match on any screened list, the shipment will refer. This means it cannot be insured without proof of a proper license or an authenticated Specially Designated Nationals (SDN) removal letter.
The screening capabilities within CoverageDock also apply to vessels to ensure they are not operating from a sanctioned country and/or whose owner is not on the OFAC list. In addition to OFAC screening, our system verifies that the vessel meets policy requirements for the vessel’s age, size, and classification. This clause is referred to as the Vessel Classification Clause in Cargo policies and it is your responsibility to only use vessels that meet the terms of this warranty. Note there are cases in which claims have been denied because the vessel did not comply with the terms of the policy. A quick vessel lookup in our Cargo insurance management system will mitigate this risk.
Reducing Errors in Coverage
In addition to screening, CoverageDock enables you to filter shipment details to reduce errors and eliminate coverage mistakes. This feature is a significant benefit when preparing Certificates of Insurance. The data filters contained in CoverageDock ensure that the proper terms and conditions are noted on the certificate, mitigating the potential errors or omissions that can take place when preparing an insurance certificate manually. For example, some commodities are subject to deductibles or restrictive conditions under a Cargo policy and must be properly noted on the certificate. If not, your client may be in for an unpleasant surprise when they discover their claim is subject to a deductible of which they were unaware. This type of occurrence could lead to an errors &omissions liability claim against your company.
Claims management is another important feature of CoverageDock. With this feature, you have access to an efficient means of reporting and monitoring the status of your Cargo claims. Notice of claim and even supporting documents can be sent to the insurance company via our application 24/7 which expedites the claim process. This feature also enables you to immediately determine the status of a claim without waiting to speak with a representative. You can also use the application to manage claims internally. In addition to adding and viewing notes, you can generate reports for monitoring claims activity for all or your office locations.
CoverageDock is also designed to keep users within their underwriting authority and expedites the turnaround process of special Cargo insurance quotations. In addition, it offers flexible integration and a custom interface with freight forwarding software systems to eliminate re-keying data and reducing insurance processing time. We provide training demos and a User Guide for the CoverageDock system.
To learn more about CoverageDock and our insurance solutions for the transportation and trade industry, contact one of our Roanoke Trade professionals at 1-800-ROANOKE (800-762-6653).