Transit Insurance Notes
Page 29
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ESTIMATING AND INSURANCE COSTS
IT is most unfortunate that
there are many cases in which hauliers estimate for a load and then find, after the estimate has been accepted, that the price asked is not sufficient to allow for the cost of insurance. But the job has to be done and the result is a loss. The moral of this is, surely, to find out the exact insurance cost before an estimate is made, The charge made for insurance usually has no relation at all to the amount of freight received, or even to the size of the load. As an example of this, it is often found that the cost of insuring, say, a glass showcase carried on a vehicle along with other goods may be far more than the insurance premium on, say, ten full vanloads of groceries doing exactly the same journey.
Again, it will be appredated that an item like a small cased adding machine may mean a purely nominal removal charge and yet, in view of its value, involve a comparatively heavy insurance premium.
In brief, hauliers should realize that insurance companies regard loads from an aspect entirely different from that which they themselves use when working out estimates. It is just as futile for a haulier to try to guess insurance rates as it would be for an insurance underwriter to fix freightage.