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by Chad Linton

Why It’s Easier to Prevent Claims than Process Them

Perishable ClaimsYou can find a lot of Brokers out there claiming to be fantastic at processing claims. Claims are, after all, a nightmare and having a Broker that can put out those fires as quickly as possible is key. For sure. But you know what’s better than a fireman saving half your house? Not having a fire in the first place.
Don’t get me wrong, Claims will happen. You do this job long enough and you will have a claim put on one, or more, of your loads. It’s just the business. But it’s so much easier to prevent claims from happening instead of focusing on what to do when they do happen. It’s like when you’re trying to take care of an old car. Preemptive maintenance is easier and less expensive than getting a new transmission or engine block.
One of the biggest reasons it’s easier to prevent claims than process them is because it’s almost always apparent. Very rarely does a claim happen truly out of nowhere. Most claims happen because of a mistake, a fault.
Things like solid communication lines, well-planned strategies, and a history of good rapport all clean up the road so obstacles ahead can be seen and dodged. You can only get these things from a Broker that focuses on Preventing Claims. A Broker that has a fair and excellent history with Carriers is a great start. When a Broker knows their Carriers, and vice versa, you get a ton of possible problems solved before they can even start. When a Broker deals with unknown Carriers, the chance for claims always goes up.
And, the most important part of this for you, is that it’s cheaper to prevent claims than process them. When it takes just a little bit more to ensure your goods will get to their destination in good shape; you’re paid, your customers are happy, and you can have peace of mind.

Written by Chad Linton · Categorized: Freight Brokerage Ideas

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