July 02, 2015 | Industry Insights

Don’t Let E&O Claims Compound Profit Losses

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Forwarders are struggling to maintain profitability as freight rates on some major container routes continue their dive, according to the Journal of Commerce (joc.com).

Profit margins, typically tight, especially in Asia-Europe trade, are being hit by new record lows for spot prices. Rates are changing daily, and there is heavy quoting and bargaining that is eating up forwarders’ time as they try to keep and win business. Almost 80% of companies are experiencing higher price pressure this year than last, a study by Simon-Kucher & Partners found.

Almost two thirds of survey respondents said they are suffering from price wars.

These margin problems mean protecting the company’s bottom line has become more important than ever. Smart negotiating on price, aggressive marketing, and developing and maintaining a reputation as a reliable, top-quality transportation specialist can go a long way to keeping a company ahead of competitors and meriting higher rates.

Part of protecting the bottom line includes guarding against costly liability claims for errors and omissions. Legal defense, even if you are ultimately found innocent, can consume resources, as researching the incident and responding to allegations diverts your company’s money and people from income-earning activities. A comprehensive errors and omissions (E&O) insurance policy can help protect your company from losses associated with liability claims. It will help cover attorney fees and other legal costs as well as settlements and court awards.

An E&O liability insurance policy for transportation specialists coupled with a robust risk management plan that reduces the chance of errors is an industry best practice that offers financial protection that is most needed in challenging economic times. At Roanoke Trade, our errors and omissions program has been refined and enhanced over two decades to meet the specialized needs of the transportation industry. We can customize your professional liability insurance program based on your specific operations, giving you protection against many E&O claims, such as failure to follow instructions, shipping delay caused by employee negligence, improper quotation of charges, and many others.

We invite you to learn more about us, our experienced talent in this highly specialized area, our creative solutions, and the value we will bring to you and your clients. Please contact us at 1-800-ROANOKE (800-762-6653).

 

 

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