Limited liability catches ignorant shippers short

ACT AT all times as if uninsured. That's the advice from Nacora managing director Ray Howell, who believes that the proactive approach is in the best interests of both insured and insurer. One of the major issues facing insurers is customer ignorance of the limitations of standard trading terms and conditions, says Howell. In the case of goods placed in a warehouse, for example, the warehouse owner will have limited liability under his standard trading terms and conditions. Insurance while goods are in storage is the responsibility of the cargo owner. Similarly road hauliers accept limited liability for cargo in their care during transit. Certain forwarders, Kuehne & Nagel being one of them, have limited their haulier business partners to an approved list, all of whom carry hauliers' liability insurance. Nacora is the in-house insurance arm of Kuehne & Nagel, but operates autonomously, offering its insurance services to the entire industry. Howell estimates that in 2001 the company's overall portfolio grew by 35%, some 20% of which was marine business. "We don't cold canvas but rely on referrals from Kuehne & Nagel sales staff as well as existing customers, several of whom are not K&N customers," says Howell. Reflecting on the past year, he notes that a rates increase was in the pipeline, but the events of September 11 were the catalyst for its early implementation on October 1. "As a result some insurance companies went to the wall and a number of underwriters in Lloyds closed shop which means that the market has now become very restricted and very choosy," says Howell. But even so he believes that the additional premium was fairly moderate. Nacora deals with the entire spectrum of cargo from car accessories to perishables, each policy tailored to the needs of the client and the cargo.