Transportation and cargo claims are among the most complex in the insurance industry. As Canada's supply chain grows and cross-border logistics become increasingly intricate, insurers, brokers and carriers face mounting challenges in handling these claims efficiently. The reality? A lack of technical expertise in this specialized area often leads to costly delays, mismanaged settlements and frustrated clients.
I’ve seen firsthand how a claim that isn’t handled properly can impact a business. Delays in assessing cargo losses, inconsistent liability determinations and poor communication don’t just slow the claims process—they can damage relationships and harm a company’s reputation. When an insurer or carrier struggles to deliver a smooth claims experience, policyholders start to lose trust.
One of the biggest challenges in transportation and cargo claims is the need for highly specialized knowledge. It’s not just about processing claims quickly—it’s about understanding the nuances of the industry, from freight liability to cross-border regulations. Without the right expertise, claims can spiral into costly delays and complications.
According to CargoNet, cargo theft in Canada and the U.S. increased by 59% in the third quarter of 2023, compared to the same time last year. Most of the cargo stolen can be attributed to shipment misdirection attacks, which remain an ongoing issue in the transportation and logistics sector.
The risk of accidents also remains significant. According to Transport Canada's national database, between 2012 and 2021, Canada experienced an annual average of 7,711 commercial vehicle casualty collisions. These incidents included 3,604 straight truck collisions, 2,950 tractor-trailer collisions and 1,297 bus collisions. Such incidents further emphasize the need for effective claims handling and the role that specialized expertise plays in mitigating the financial and reputational damage caused by these events.
The need for specialized expertise in transportation claims will only grow as the industry becomes more complex. A claim that’s not handled correctly can cost much more than just money—it can damage reputations that took years to build. Missteps in handling these claims, whether due to technical inaccuracies or delays, can have ripple effects far beyond the financials. A mishandled claim can lead to extended downtime, loss of business opportunities and strained relationships. However, the real cost often goes beyond financial. In an industry where trust is paramount, poor claims handling can damage reputations and undermine public confidence. For businesses that have spent years building strong client relationships, the impact can be long-lasting, making it harder to recover.
