One of the biggest hits to a trucking firm’s insurance policy can be the theft of cargo and Ontario insurance companies are sounding the alarms to bring attention to this particular threat.
Across the province, the transportation and logistics industry continues to see an increase in cargo theft, primarily through a tactic known as ‘fictitious pick-ups’. Essentially, fictitious pick-ups occur when a legitimate transportation carrier’s identity is stolen and thieves impersonate a carrier to pick up a load.
These schemes can be quite involved. In these scenarios, loads may be unknowingly assigned to a fraudulent carrier through online load brokerage websites. The fraudulent carrier may even provide some illegitimate supporting insurance documentation that is forwarded via email and originates from a fictitious broker’s email. Loads are often destined for the USA and picked-up right before a weekend, thus giving them time to make away with the load.
Keep these important tips in mind to avoid falling victim to the scheme:
- When brokering a load using an online load brokering website, customers should only use carriers that they know, trust, and have used in the past
- Carefully review the carrier’s supporting documents for any obvious errors such as formatting, typos, and the insurance information (e.g. policy number, insured name, logo, or brokerage information)
- Double check that carrier’s contact information matches the information displayed on their website. If not, call the carrier’s toll-free number to confirm legitimacy
- Ahead of time, customers should be asking the carrier to provide credentials for the driver picking up the load
- If something seems off, customers can contact the insurance carrier directly to verify if the policy is valid
- Check that the name displayed on the side of the vehicles matches the name of the carrier assigned to the load
- If the decals on the side of the unit are removable (e.g. magnetic) or there is no name at all, ask additional questions to verify
- All staff should be properly trained on theft prevention and what to look for on the documents they are given by drivers/carriers
- Implement security measures such as check points for drivers coming in and leaving facility and/or yard areas. Confirm positive identification of drivers and equipment and use secure pickup numbers
What safeguards or special procedures have you implemented to stop cargo theft? Leave us a comment in the comment section below.
Thank you our insurance partners at Northbridge Insurance for helping us compile the list of important reminders to keep our trucking industry safe and secure.
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Staebler Insurance is a general insurance broker specializing in auto insurance, home insurance, small business, and commercial insurance. Staebler brokers proudly serve Kitchener, Waterloo, Cambridge, Guelph, Stratford, Wellington County, Listowel, Fergus, Elora, and southern Ontario. Click here to get started today.
Staebler Insurance is a general insurance broker specializing in auto insurance, home insurance, small business, and commercial insurance. Staebler brokers proudly serve Kitchener, Waterloo, Cambridge, Guelph, Stratford, Wellington County, Listowel, Fergus, Elora, and southern Ontario. Click here to get started today.
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