6 Dec Value of Great Insurance for Couriers, Logistics, and Their Clients
Building Customized Logistics Insurance Policies That Protects The Courier and Client
Why is it crucial for your courier and/or warehouse provider to have the best insurance?
On this episode of 'Guy in the Corner Office', we have Special Guest Brian Jungeberg from Risk Strategies, our custom insurance partner, to help navigate what adequate protection for the logistics industry looks like. What can happen if you don't have the proper coverage and when you do, how does it benefit the client? Finally, we discuss the value and lessons learned of how great coverage supersedes the bare minimum.
This is excellent information for existing courier and logistics providers and businesses currently using couriers. For those considering using your own drivers, you'll be able to hear what receiving the appropriate insurance coverage entails and use it to help determine whether hiring or contracting is the best for your business model.
You can find more information about Risk Strategies Company's outstanding services at https://www.risk-strategies.com/industries/transportation/.
Hi. Welcome to this edition of the corner office. I'm Chris Marchetti. If you didn't know me, I'm with Excel Courier and Logistics. Today we have a very special guest. We're talking about our insurance.
Brian Jungeberg 0:43
Now that's a loaded question. No...
Chris Marchetti 0:44
Other than it cost us a lot of money.
Brian Jungeberg 0:46
That's it, I just spend your money. We, I would say that we work with risk management, right. So risk management can encompass procuring insurance products for you to help protect the business and your customers. It can be discussions on how we have a safer workplace, a safer warehouse. It can be all of those things. A lot of times, it's working with the operations team or the sales team on, hey, we have a customer that's asking for these insurance requirements, right? Do we have these? If we don't have these? What are the costs? Should we be going back to the client and talking about something different with respect to insurance products and all those kinds of things in between? So, a lot of times, our team is pushing out certificates of insurance, proof of insurance, auto ID cards, all of this stuff that kind of is the nitty gritty insurance stuff that has to get done.
Chris Marchetti 1:40
Right, well, and you know, we're in a fairly unique space with the non-asset, generally non-asset maybe not totally non-asset, but let's add the asset-light, independent contractor model. And that's something that you all know a lot about. I mean, we have every now and then, you know, somebody, hey, check out this insurance company, and you talk to him, and then when you say, oh, he's independent contractors, they're like, oh, gosh, it's gonna sound like I'm hanging up, but I'm not really sure.
Brian Jungeberg 2:09
When I came into the business in the early 2000s, we were KIK insurance. And then and KIK had been born out of Osborne companies, where Jeff established kind of saw a need for the last mile space. Back then, we always called it courier messenger. Right, right. Right. And then it evolved. We actually sold that company to Oswald while we were at Oswald for a while, and then we left Oswald and started Brightstone insurance. And then from Brightstone, we're now Risk Strategies, so it's been the same team the whole time. But we've we've changed names a few times now.
Chris Marchetti 2:46
Well, hopefully, Jeff is kind of enjoying a little time away, or is he still kind of staying pretty involved with, you know,
Brian Jungeberg 2:54
He's fully retired now. Okay, take a second guessing his retirement. He's always the guy that likes to work. So, he's we're gonna try to find things to keep busy.
Chris Marchetti 3:03
I've heard that about retirement. Yeah, like, wow, man. You can only golf so much, right? Well, I could go off a lot because my game was so horrible. I could do a lot of golf, and they try to get better. So why is your insurance important to our industry, to the couriers, and to the customer?
Brian Jungeberg 3:18
Well, so I think most time, generally, the insurance space looks at asset-light or non-asset-based operations, and all I think of is Domino's Pizza. They were gonna get it there in 10 minutes or less, and they think of this kid, 16 screaming across town in his vehicle, and that couldn't be further from the truth.
But the insurance world is if they're frightened by something, they're gonna be frightened by something for a long time. So, I think where it gets very unique in your spaces, we do, you know, we do see the use of 1099 independent contractors. We even see employees driving their own vehicles with some operations, and it creates this unique exposure called hired and non-owned auto. So, you are hiring these guys to drive their vehicles and do deliveries, and it creates an exposure for them, and it creates an exposure for you as the company. And what your client wants to know is, hey, look, if something happens, God forbid, do you have insurance as Excel that's going to protect Excel and really what they care about, is that right? And that's what we specialize in.
So, there's, there's a unique way that you have to go about procuring that insurance. You have to look at what is required by the DOT right to have your motor carrier authority. You have to look at how you treat those independent contractors so that they remain independent contractors and somebody doesn't tell you their employees because that would be poor too. So, there's all those things that kind of go into it
Chris Marchetti 4:40
Right, right. Right. Well, I think you touched on something there is the value to the clients, you know, protect them from a certain level of liability, right? So, we are where they're removed slightly from a certain amount of liability. So that's beneficial to them, I think beneficial to the industry because there are a lot of courier companies that may be smaller that really don't have maybe won't have the necessary type of coverage. We talked about, like our first insurance guy, we said, we think we have insurance, and we'll find out as soon as we have an incident and then evolved over time to you know, a little bit higher level and a little bit higher level and met you all.
Brian Jungeberg 5:19
Here we have an old saying that's, you know, no one asked what the price was after the claim is covered. And that's, you know, that's very self-serving in one sense for the insurance to say that, but you know, we would say they don't have good coverage program like you guys do, then this is what they're using for insurance, which is a really poor way to go about it.
Chris Marchetti 7:07
And I think about that a little bit in terms of, you know, you can have very minimal you can have, you know, I just like your own personal insurance you can have the whole range from just a little bit, up, you know, what can you tell us about that?
Brian Jungeberg 7:20
So, that client, for instance, you know, just kind of your normal Hey, I have cargo in general liability mindset, right. And you think, wow, there's this big auto exposure out there, you haven't done anything to address it. The next stage would be our recommendation for anybody auto liability, whatever that means, depending on how your operational makeup is ready, you know if your asset-light or no asset to purely hire, not own, maybe it's a fleet auto liability policy to cargo general liability.
Chris Marchetti 9:38
Like I always say to Brian, every time at this time of the year when we are renewing. I'm like, I don't like you very much because it's always a lot of money. And he says to me if you needed me, you'd be glad you spent the money. So I say you're right here's the check I remember the money.
But it's kind of, I think something else you've touched on that was interesting is that different types of stuff. Like we may have a customer who's a jewelry store, and you'll say, hey, we've got a special little writer because of that type of store or some of the medical stuff that we do, you need different types of, you know, and they can be client specific. Yeah.
Brian Jungeberg 10:17
So what you left out is I have to pry the check from your hand. But beyond that, yes, we can carve out things. I think that's one of the fun parts. I tell people all the time. They say well, what do you know, you're you schlep insurance all day, we build puzzles. I mean, it really is no operation in your world. And I think you would agree with this is the same for everybody does something are different. And that's where the nuances come in to understand. Okay, you tell me how you what you do, and what clients you work with and the goods you're handling. So that and we'll figure out what makes sense.
Chris Marchetti 11:23
For all the customers out there, you see, this is work Brian and the company like, you know, a reputable company, and we provide a lot of insurance. For all your competitors out there trying to learn some good tips, Risk Strategies is a great company to work with. Brian's a great guy to work with and really knows what he's talking about. So thank you, we want to give any, any plug for risk strategies while we're here last minute plug on where we would
Brian Jungeberg 11:51
We would love to talk to anybody in the space, and I think that, hopefully, our clients would all say you may not always love what we had to say. But we're going to tell you anyways, and we're gonna help you make the decision that works best for your company. We're not an all-or-nothing shop. We're just, been around a while under different names, but we're not going anywhere anytime soon, either. So, if it doesn't work out this time around, we talk. Who knows what happens in the future but use us as a resource.
Chris Marchetti 12:18
Right? First of all, they did a great job for us. And I think he was something else that you're also it's not just you don't just sell us insurance. You also help us understand stuff. So, when we talk about things, sometimes you know we get a contract. I send you contracts a lot, and you'll say, well, they're asking for this or that, but you know, that's maybe not applicable. You know what, you should talk to them about this or that. I mean, as Brian would say, he's not an attorney, so he doesn't give me legal advice. But he does, as a partner, kind of say, hey, you know, when you're looking at this, you might want to ask him about that or do they really need this? So, I mean, it's really valuable. The relationship was great.
Brian Jungeberg 12:58
Happy to do it. We appreciate the long-standing relationship.
Chris Marchetti 13:01
Yes, us as well. So don't forget you can see us; go to www.excelcourier.com to see us. You can go subscribe to YouTube. Follow us on LinkedIn. As we say, we're moving lives forward every day. And people like Brian help us move lives forward. So, Brian, thanks for being here. Thank you. Appreciate you. Hey, thanks.