What is the carrier’s OCP? OCP insurance covers third party liability of persons performing road transport in the country and abroad. It guarantees protection in the event of unforeseen events such as a collision, accident, destruction or theft of goods. Additional clauses make it possible to extend the scope of insurance by improper performance of the contract in terms of timely deliveries, unscheduled reloading, breach of due diligence or even the need to provide additional vehicles.
Freight transport is one of the most difficult and very responsible professions. On the one hand, it requires full concentration and attention on the road, on the other hand, deadlines and punctuality of deliveries are required, often due to the transported goods. An additional difficulty is the fact that carriers spend the night at gas stations or empty car parks, where breakdowns may also occur. It is worth knowing that the carrier is responsible for the transported goods during transport. Therefore, the carrier should take out liability insurance.
What is the carrier’s OCP? Is it mandatory?
Third party liability insurance belongs to the group of voluntary insurance. As a rule, it is the company employing drivers who decides to buy such an additional policy. Taking into account the competition in the market, buying such insurance has two main advantages. On the one hand, it attracts willing employees who are released from financial responsibility for the transported goods and this benefit binds the employee. On the other hand, it attracts customers who do not have to worry about their goods. In the event of damage, they receive compensation without undue delay, as it is paid by the insurer.
OCP insurance can be purchased by any transport company. This is, as mentioned, an optional policy. This means that many of its provisions are a matter of negotiation between the contractor and the insurance company insuring him. The important thing is that it provides a lot of protection for both the company and the customer. The company is responsible for the goods from the moment it is accepted until it is delivered to the address indicated in the order. A lot can happen on the road, and some goods are so fragile that a car breakdown and the need to stop at a gas station or parking lot can be a serious inconvenience or even a loss. The costs can reach tens or even hundreds of thousands of zlotys.
That is why an insurance policy is an excellent protection. It protects the transport company from the costs or compensation it would have to pay to the customer, and at the same time protects the customer from the time-consuming process of claiming compensation. The scope of cover, its detailed conditions and limitations can be determined during a conversation with a representative of the insurance company.
A handful of important information
What is the carrier’s OCP? In its basic form, OCP insurance covers unforeseen events that result in damage to the goods. This means, for example, that you can get compensation if your cargo is damaged in an accident. The customer of the transport company can also count on compensation if the order is not completed on time. The further scope of protection depends on the selected package. The more comprehensive it is, the higher the OCP premium. For example, the policy may cover the theft of goods or their destruction as a result of an act of vandalism. It also covers cases of cargo flooding or fire. OCP allows you to obtain compensation in the event of a loss. Importantly, many ordering parties have definitely withdrawn from the services of companies that do not have an OCP policy.
However, it is worth remembering that some exceptions are not covered by insurance. One of them is ADR, i.e. the transport of money, antiques and living beings. The contract with the insurer usually lasts for a year, and the price of the OCP policy is determined by each entrepreneur individually. This is influenced by factors such as the company’s annual income, the type of goods being transported, and whether they are goods with increased transport risk (such as money, documents, art, animals, electronics, alcohol and tobacco). Ultimately, it is the representative of the transport company who decides on the amount of compensation – when making this choice, the price of the transported goods should be taken into account, as the insurance should fully compensate.
In the basic version, OCP insurance should protect the goods against damage, theft and financial consequences caused by delayed delivery. When the theft or transfer of goods to a subcontractor to a fraudster results in a breach of the contract with the customer, there are also extended policies that cover the cost of damages. If you want to better protect your customers’ assets, it is necessary to introduce a shipping policy in the offer. This is an additional insurance purchased by the customer, which is directly related to the protection of this insurance and has nothing to do with the carrier’s OCP. OCP insurance is necessary to ensure the financial security of the company. Random accidents happen very often and you always have to think about the future of the company.