What is an OCS policy, how much does it cost and what does it cover?
What is OCS insurance?
What is the OCS policy? It is an insurance package created especially for freight forwarders who have to make many important decisions every day. This can also involve mistakes, damage to cargo, or failure to fulfill a contract. In such a case, you benefit from the OCS insurance indemnity option, which guarantees to cover all costs. Before signing a contract with an insurance company, it is worth reviewing the subsections of the contract and also finding out under what conditions the contract works. It is also worth determining the sum assured, which is an important component of any type of insurance. It is advisable to get this type of policy, which will make the company's position on the market even more credible, especially in the eyes of the customer. The recipient will also be more confident that he works with a professional carrier, which in case of trouble will react appropriately to the situation. Many insurance companies on the market offer this type of service - although the difference in offers is often negligible, the devil is in the details.
How does forwarder's insurance work?
What does forwarder's insurance protect against? Forwarder's insurance is one of the basic insurances used in the transportation industry. It protects a company and a forwarder against civil responsibility in case of mistakes. In case of non-fulfillment of an order or wrong delivery of a shipment, the financial responsibility falls on the insurer who, based on predetermined thresholds and tariffs, pays the customer appropriate compensation. Its amount depends not only on the damage caused but also on the guarantee amount of the policy - in case of higher compensation, the difference is paid by the company itself or by the forwarder. Before signing a contract, it is worth getting acquainted with the conditions offered by the insurer.
Forwarding insurance - how to conclude a contract? At first, it is worth reviewing the offers of insurance companies - not only the amount of the policy but also the conditions offered by the company are important. It is important to pay attention to details, as it happens that some damages are not covered or you have to pay extra for them. Before signing a contract, it is necessary to construct it in such a way that it is maximally profitable for the forwarder and the company. In some cases, it is even worth paying a little bit more, but to provide additional protection in case of taking orders of special importance. Extending the insurance standard is a common practice among logistics companies, which is also well perceived by the customer.
OCS policy - what are the costs and coverage?
What costs do you have to pay for an OCS policy? This question depends only on the insurance company and the scope of the given contract. In the case of orders with greater risk, the insurer may ask for a larger guarantee deposit. However, in most cases, the compensation amounts can reach a high sum. Therefore, it is better to think about good insurance that will protect against this risk. It is worth looking around at the offers of insurance companies, as well as arranging a consultation. Before the agreement is concluded, it is possible to negotiate not only the rate but also the conditions and damages to be covered by the insurance. Good insurance for a forwarder is the best cushion against problems on the road.
What does forwarder's insurance protect against? Depending on the contract signed, it can be:
- non-performance of service,
- improper order execution,
- mistakes made during performance of forwarder's job,
- choosing the wrong means of transport,
- wrong route,
- incorrectly prepared shipment for transport,
- mistakes in customs documentation,
- improper storage of goods in the warehouse.
Some of these mistakes can end up in a catastrophe and then it is better to ensure additionally to have a safety net. Freight forwarders, drivers, and transport companies should additionally protect themselves from mistakes that sometimes happen at work. Some of them are not committed intentionally, but the customer is entitled to compensation. Therefore, it is better to ensure the company against many unknowns that may arise during the business.
Forwarding insurance - what are the benefits?
Is forwarding insurance beneficial for a transport company? It is not only beneficial but even necessary in the transport industry. It is not obligatory, but it is always a good idea to insure your forwarder against financial liability in case of mistakes. Thanks to that, neither the company nor the forwarder will feel a sudden financial shake-up caused by the payment of damages. Mistakes in logistics happen and you need to protect yourself against them - especially financially. It is worth getting acquainted with their offers, and then negotiating the best offer, which will be profitable for the company, and also will effectively protect people working in it. Insurance in today's road transport is a standard and it is worth sticking to it.