U.S. Truckers slowed by lockdowns are driving coverage demand as restrictions loosen

As pandemic lockdowns have expired in some places and shipping activity picks up, demand is rising in the U.S. for insurance to cover goods carried by trucks from ports and rail yards to distribution centers.

Zurich North America’s Alternative Markets Team has responded with its Intermodal Transportation Program designed to meet the growing need from transportation carriers for auto liability, general liability and cargo/inland marine coverage. The program is written for Zurich North America by Trinity Underwriting Mangers (TUMI), a Savannah, Ga.-based division of Worldwide Facilities LLC. TUMI is a program administrator that focuses on several areas of transportation exposures, including a division that specializes in underwriting intermodal risks.

The program, which offers coverage with a combined single limit of USD 1 million and cargo limits up to USD 300,000, is available to shippers in 22 states, mostly coastal states with significant port activity and those in the Midwest with large rail hubs.¹

The pandemic was hard on the transportation industry, with steep drops in intermodal shipments, said Dan Gogolew, Zurich North America’s New Program Business Lead. Since the middle of March, the global economy has slowed significantly due to the COVID-19 pandemic, which has led to a big drop in container shipments to the U.S., he pointed out.

“This business is critical to the supply chain and in getting products to people so they can go about their daily lives,” Mr. Gogolew said. “It’s great to be able to contribute to keeping things moving. After all, without insurance coverage, freight shipments would be unprotected and at risk.”

The collaboration with TUMI is a good fit for Zurich, Mr. Gogolew said, because the program administrator’s team has extensive experience in understanding the exposures and controls of the intermodal industry as well as the specialized coverages that need to be in place.

The intermodal transportation program is also supported with tools and resources provided by Zurich North America’s Risk Engineering Alternative Markets Director Mary Vienneau and her team. “Our Risk Engineering Claims Analysis Tool helps TUMI analyze and interpret loss trends and implement proactive measures to reduce accident frequency.”

Dashboard camera technology and telematics are among the key strategies the program administrator is using to reduce the risks. “TUMI’s strategies mesh well with Zurich’s customer-focused approach,” said Ms. Vienneau.

“It's this type of collaboration, customer focus and sense of urgency that's being noticed in the marketplace and will set us up well for future opportunities,” said Zurich North America’s Head of Programs Greg Massey.

¹ Your policy is the contract that specifically and fully describes your coverage, terms and conditions. The description of the policy provisions gives a broad overview of coverages and does not revise or amend the policy. Coverages and rates are subject to individual insured meeting our underwriting qualifications and product availability in applicable states. Insurance coverages underwritten by individual member companies of Zurich in North America, including Zurich American Insurance Company. Risk engineering services in the U.S. are provided by The Zurich Services Corporation.