Ann Mullen
President at Mullen Insurance Agency, Inc. - Garland, Texas
Transport Claims Impacting Auto Dealers Are On The Rise
Dealer insurance non-weather physical damage claims seem to go in cycles. The last ones with the most impact were the thefts of catalytic converters. Those have now dropped off considerably. A primary factor in that reduction is ‘you’ the dealer.
My experience has been that our dealers avoid insurance losses as much as possible and once they become aware of the prevalence of a particular type of loss, additional attention is given to preventing the loss. The coverage is important, but every claim is a cost to the insured, whether it is the deductibles, the time required to settle a claim, increase in premiums or just general disruption of the normal day-to-day activities.
Our goal at Mullen Agency includes working toward a decrease in claims while still providing proper coverage at a competitive rate. And we now need DEALER SUPPORT in a specific area: vehicle thefts and/or damage while in-transit and the care, custody and control of transporters.
Many Transport Companies Are No Longer Carrying Cargo Coverage
In the past, licensed transport companies typically carried all the necessary coverages to protect the dealer who hired them. Those coverages include not only liability, but also CARGO coverage. For whatever reason, there has been a rash of claims involving physical damage loss while in-transit via licensed transport companies with NO available cargo insurance.
This sudden scarcity of in-force cargo insurance is a mystery to me; it could be premium cost to the transporter; it could be whoever is assigning transport carriers requests liability only coverage; it could be any number of things.
However, the result is the same, our dealers are being hit with claims that should be covered elsewhere but are not. And we know the ultimate outcome is expensive to our dealers and will become more so – unless corrective action is taken soon.
Steps You Can Take As An Auto Dealer
One of the endorsements I’ve seen circulating and being considered requires that the dealer obtain proof of CARGO insurance when hiring transport companies. As far as I can determine, this endorsement has not yet been activated, but it could be at any time.
It is in everyone’s best interest to immediately begin the practice of requiring proof of CARGO insurance from every transporter you hire. To be certain of that protection, ask for a Certificate of Insurance listing both liability and CARGO coverage. You may want to take the extra step of calling the agent listed on the COI to verify the policy is in force with CARGO coverage. Some of our dealers use a dispatching service of some sort. Be certain to verify with them that CARGO is a listed coverage.
We appreciate our dealers and understand that it requires all of us working together to be as efficient and profitable as possible.
Thank you for your business.
Ann Mullen-Martin
President – Mullen Insurance Agency Inc
A Division of Pinnacle Insurance Partners, LTD
Mullen Insurance Agency Is Ready To Help
Our clients can rest assured, knowing our priority is providing quality products with a competitive premium as we have done for the last thirty plus years.
Do not hesitate to contact me. I’m eager to receive your feedback, questions and comments. If you have specific subjects or insurance concerns you would like to discuss, please let me know. amullen@mulleninsurance.com or www.mulleninsurance.com.
If you’d like additional information on insurance for your business or you’d like to request a quote, please visit https://mulleinsurance.com/#Insurance-quote or give us a call at 972-681-6297.
Ann Mullen-Martin
President
MULLEN INSURANCE AGENCY, INC
A Division of Pinnacle Insurance Partners, LTD
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