Virtually every person has an insurance policy, and insurance companies offer more and more extensive and tailored packages. It’s always a good idea to protect yourself against an accident, especially if you have children. It is also worth remembering that insurance is not only intended for natural persons, but also for companies ( company insurance ) that want to take care of their finances. An important insurance that every transport company should have is the liability insurance OCP.
OCP – what is it?
Carrier liability insurance is dedicated to people who provide road haulage services both in domestic and international traffic. The OCP policy is designed to ensure the safety of the driver, the vehicle driven by him and the transported goods.
The OCP policy is concluded with a specific insurance company for a period of twelve months (although a longer or shorter period can also be negotiated). Given that this is insurance offered by different insurance companies, the terms and conditions may differ from one company to another. The purchase of an OCP policy is not required for the carrier, although many companies renting shipping companies require that the company has appropriate insurance packages. Having a wide insurance package for carriers makes a given transport company look professional and enjoys greater trust among customers.
What is included in the carrier’s OCP insurance ?
Considering that the purchase of OCP insurance for carriers is not legally required, there are no permanent, unchanging conditions that will always be offered by each insurer. However, it does not change the fact that insurance companies have developed standards that most OCP policies available on the market meet.
The OCP policy is important mainly because it secures the services provided by shipping companies. The insurance guarantees the transfer of financial liability in the event of non-performance or improper performance of the order from the company to the insurer. The basis for claims is the transport contract between the carrier and the customer, the legal basis being the Civil Code, the laws describing the transport law and the Convention on the Contract for the International Carriage of Goods by Road (CMR).
The OCP insurance provides the customer with compensation in the event that the goods transported by the carrier are damaged or in the event of other, random accidents that will cause damage to the customer’s company. At the same time, the transport company is also insured against financial liability as it is transferred to the insurance company. For this reason, having OCP insurance is helpful and often required by companies using shipping services.
Among the listed events that can be secured by the OCP policy, we most often find: theft of the goods, its damage or total destruction, damage as a result of a traffic accident, vehicle breakdown and delay in delivery.
The most common condition that must be met by the carrier in order to be entitled to compensation from the insurer is compliance with road traffic rules and safety rules for transport to which drivers transporting goods are subject. If specialists sent by insurance companies show that the mishap was the result of failure to comply with applicable standards, no compensation will be paid.
However, at the same time, there are also additional OCP insurance packages that protect situations in which the failure to perform the transport service or its improper performance is due to the company’s or driver’s error. Of course, this type of insurance is relatively more expensive than the basic, standard package, although they are equally popular, especially in the high season, during periods of increased traffic on the roads.
Carrier’s liability insurance – price
It is difficult to determine the standard price of OCP insurance, because it consists of many factors and usually the price is selected individually during negotiations with the transport company. The amount of the premium is mainly influenced by the sum guaranteed (the amount covered by the policy), the annual income of the transport company, and the class and type of goods transported (the more delicate and more expensive the goods, the higher the price).
The individual conditions that will be included in the insurance contract are also important. For example, when the transport company declares that in some cases, such as inadequate performance of the service, it will bear the financial costs itself, the insurance premium may decrease. At the same time, if the transport company decides to transfer a small percentage of financial liability to itself in the event of various random events, the insurance premium will be much lower.