According to the Freight Analysis Framework, cargo tonnage in the United States is projected to increase by 1.2% on a yearly basis between 2018 and 2045. This may lead to an increase in the cost of cargo insurance for shipping businesses.
For companies looking to add a loss payee on their cargo insurance policy, you’ll need to list down the correct address for your lender in addition to other information required by your insurer. This will allow them to claim insurance payments before the policy owner.
Since the process can vary depending on your provider, the first step to adding a loss payee to your cargo insurance policy is to get in touch with your insurance agent or insurance company. They can guide you through the process and let you know of any documentation needed to list the loss payee.
The most important piece of information needed is the address of your lender. Some companies may have multiple addresses, so you should always double-check when purchasing insurance.
Something to keep in mind is that some companies with loss payable interests are not willing to accept changes to any loss payee clauses after the policy has been issued, so the listing of loss payees should ideally be done during the insurance application process.
Read on to learn more about where smaller companies can purchase cheaper insurance!