WHAT’S THE TRUCK?!? dives into usage-based insurance from Reliance Partners
Don’t you want to get cargo insurance as easy as booking loads?
Trusted Partners thought so. The leader in trucking insurance and InsurTech now offers usage or usage-based insurance (RUBI) coverage that can be booked per load. This new way of booking ensures that you only receive the amount of cover you need, when you need it.
RUBI caught the interest of Timothy Dooner and Michael Vincent of FreightWaves, so the WHAT THE TRUCK?!? The duo welcomed Graham Gonzales, director of strategic accounts at Reliance Partners, to the show to explain the concept in more detail.
“Usage-based insurance is used when a shipper, motor carrier or freight broker is trying to get adequate coverage for odd cargo that is typically excluded or for a very high value load,” said said Gonzales. “We provide coverage so no one is underinsured.”
Reliance Partners offers RUBI coverage lines for prime and excess freight, full truckload, less than truckload and third party trailer rental/trade, with excess auto liability based on current usage for domestic, cross-border freight and internationally.
Let’s say you’re trying to win a shipper’s business, Gonzales explained. You’re tasked with moving a million dollar load, but your carrier pool, for the most part, is full of carriers with freight limits of $100,000. What’s your next step?
“[Carriers] can quickly connect commodity values to a program or spreadsheet, which will then provide an instant insurance quote that they can purchase at that time,” Gonzales said. “Some programs take less than a minute to book. Others you can just book when it suits you and then be billed the following month.”
Gonzales said what makes RUBI so great is that motor carriers, freight brokers and shippers can use it to cover nearly every element of their supply chain.
Regarding 3PLs, Gonzales said Reliance’s RUBI program helps 3PLs expand their capacity into the capacity that already exists.
“We are able to use this pool of carriers of $100,000 cargo coverage carriers, which is very standard, and have them move more loads above that limit,” he said. stated, explaining the benefits of allowing carrier pools to include high-value cargo. . “[Reliance] is the brokerage of everyone working together in a safer and more efficient way, and with different products and load values that were previously somehow inaccessible to smaller brokerages and carriers.
Asked why insurance companies have taken so long to offer simplified coverage like RUBI, Gonzales explained that price plays a major role. Compared to a $6,000 to $10,000 contingent freight policy that a typical insurance company receives, say from a small broker, it would take a few months of a RUBI policy to match the same price of coverage.
“So that hasn’t been a priority for a lot of these big insurers,” Gonzales said. “Meanwhile, smaller, more nimble and technology-driven insurance companies are specifically targeting this segment as they are actually gaining huge market share.”
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