UPS Capital expands access to transactional cargo insurance for shippers
April 12, 2018: UPS Capital, a subsidiary of United Parcel Service (UPS), recently announced expansion of its transactional cargo insurance portfolio with leading live carrier and API connection provider, Banyan Technology.
This new integration allows shippers and third party logistics (3PLs) providers to more seamlessly select transactional insurance coverage at the time of shipment processing, and experience enhanced claims processing.
“Companies can protect their in-transit goods more quickly and easily with this API integration,” said Dave Zamsky, vice president of marketing, UPS Capital.
“While the vast majority of shipments move without issue, a recent study commissioned by UPS Capital revealed that 92 percent of shippers experience some type of loss, damage or delay each year. Integrating with Banyan provides shipments with coverage beyond standard carrier liability,” said Zamsky.
Companies using Banyan’s transportation management solution, or their suite of APIs, can obtain transactional cargo insurance coverage for their LTL shipments.
Coverage can be elected at the time of shipment, and generally covers reimbursement up to the invoice value of the goods, thereby minimising margin erosion in the event of loss or damage. This is meaningful as the value of goods transported is projected to increase faster than tonnage2.
With almost 50 million tonnes of goods valued at $52.7 billion moving through the US freight system daily, incorporating seamless access to insurance coverage is a value-added benefit for businesses that want to protect their investments throughout the supply chain.
“The key is to integrate insurance in the natural workflow of the freight transaction,” said Lance Healy, chief innovation officer, Banyan Technology.
“Most shippers, and even some 3PLs don’t realise the difference between carrier liability coverage and cargo insurance. This program delivers tremendous protection in the event of a loss or damage,” said Healy.