If your agency offers transport insurance, many factors play a role in determining what the package should include. Working with an MGA who understands the intricacies of the interstate cargo insurance market helps ensure that you are offering your clients the best service possible.

Legal Requirements

Carrying cargo from state to state carries certain legal responsibilities and, as a result, is typically more expensive than transporting goods within the confines of one state. Policies must meet federal requirements as dictated by the Federal Motor Carrier Safety Administration (FMCSA). They must also meet or exceed the minimums required by each state the carrier services.

Rate Determinants

There are specific coverages in which MGAs familiar with the interstate cargo insurance market specialize. They can design packages that include liability, physical damage and cargo insurance that meets the needs of these particular clients, and the rates for these packages are often determined by the extent of the coverage needed. Your clients should be advised that the following factors also tend to raise premiums:

  • Drivers operating in areas with above average accident rates
  • Drivers operating in excess of a 300-mile radius
  • New Drivers

If you work with clients in the trucking industry, it is important to familiarize yourself with factors that affect their insurance premiums. The better you can assess their needs, the better you can serve them.