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Expert Interview: Ed Chadwick Discusses Cargo Insurance Basics

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UWT recently chatted with Ed Chadwick of E.C. Transportation Insurance Services Inc. (ECTIS, Inc.) to get some answers to important questions related to cargo insurance specific to refrigerated transportation.

UWT: Ed, first off, let’s discuss cargo insurance basics. What is the most basic cargo insurance a carrier of refrigerated produce should have?

EC: All carriers of refrigerated produce should have a “broad form coverage” which includes refrigerated perils coverage. (Carrier companies have three options when purchasing a cargo insurance policy; the “base” named policy protects against the most common dangers; the “broad form” provides protection against additional, specific risks, and the “special form” covers any risk that the policy does not state is not covered).

UWT: What is the most common plan that you see used?

EC: The “broad form” coverage that I just mentioned.

UWT: What are the advantages of this type of plan?

EC: “Broad form” coverage gives the carrier more coverage over the refrigerated product that is in their care, and less exclusions of perils that may cause a claim.

UWT: Would you say that “broad form” coverage is the best type of cargo insurance plan for carrier of refrigerated produce?

EC: Yes, it is the best plan.

UWT: What inclusions are beneficial to have on a cargo insurance policy for a carrier of refrigerated produce?

EC: Refrigerated breakdown or malfunction; these are the most common perils that refrigerated carriers experience, so having coverage for this is crucial.

UWT: What are the most common exclusions that you see on cargo insurance policies?

EC: With respect to exclusions, there are various conditions that may be included in some “broad form” policies; the most common to stay away from that I have experienced is the condition of record keeping of refrigeration unit maintenance. Oftentimes, the policy wording can sometimes be too “restrictive” and cause a denial of a loss.

UWT: And, what are the most common reasons for denial of loss that involve refrigerated produce cargo that you see?

EC: “Hot loads” (loads that arrive at receivers above their desired temperature), and refrigeration unit issues.

UWT: What exactly is covered under “broad cargo” coverage? We have been told it may not automatically include “reefer breakdown” coverage.

EC: The short explanation to this is “less exclusions” then would be on a “basic” named peril form, but any conditions and exclusions need to be reviewed on ALL policies by the named insured. The named insured should demand their agent review the policy with them and explain to the named insured what the policy covers and doesn’t cover, so they can be sure they fully understand how and for what they are protected.

UWT: How do you suggest carriers make sure they are covered with the right insurance?

EC: Call ECTIS, Inc.!

UWT: Thanks for your time Ed and for shedding some light on the topic of cargo insurance!

Edward Chadwick has over 35 years’ experience in truck and transportation insurance, and owns E.C. Transportation Insurance Services Inc.; they have served over 300 Washington based trucking customers and are fully licensed to write truck insurance policies in Washington, Oregon, Idaho and California. Contact the team at E.C. Transportation Insurance Services today for more information on equipment changes, multiple coverage options, insurance rates, and group rates!!! Visit their website:; email: ; or contact them toll free at: 855.469.1166.

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