Discover the Power of On-Demand Freight Insurance

Cargo theft has reached unprecedented levels in recent years, posing a substantial threat to supply chains. In 2024, North America experienced a 27% increase in cargo theft incidents, totaling 3,625 cases. The average value of stolen shipments rose to $202,364 per incident, culminating in an estimated total loss of $454.9 million. ​

Many companies operate under the misconception that carrier liability will fully cover losses due to theft or damage. However, carrier liability is often limited and may not reflect the full value of the cargo. For example, liability coverage provided by carriers typically ranges between $0.50 and $25 per pound, which can be significantly less than the actual value of high-value shipments. Additionally, carriers may invoke limitations for damages resulting from acts of God, shipper negligence or other exclusions, leaving companies vulnerable to substantial financial losses.

Meanwhile, Shippers and 3PLs are expected to deliver more freight faster and safer than ever before. But with rising theft, damaged cargo and legal exposure, simply booking a shipment isn’t enough. You need to be sure that what you’re moving is also protected. That’s where on-demand freight insurance comes in.

What On-Demand Freight Insurance Really Means

Traditional cargo insurance can be clunky, especially for fast-paced operations. On-demand insurance allows you to instantly opt-in coverage during the shipment booking process. It’s a seamless add-on that follows your shipment from start to finish whether it’s Truckload, LTL, Final Mile or Parcel.

On-demand cargo coverage offers a proactive and efficient solution to mitigate these risks without complicating existing workflows. Unlike traditional insurance models that may involve lengthy processes and rigid policies, on-demand insurance provides flexibility and immediacy. Shippers and 3PLs can secure full-value coverage tailored to the actual value of each shipment, ensuring comprehensive protection against potential losses.​

Here’s how it typically works:

• You define your shipment details including commodity and declared value
• You get real-time quotes not only from carriers but also for the insurance premium
• You choose whether to insure the shipment with a simple click
• If accepted, a certificate of insurance is generated and tied to that shipment

Why On-Demand Freight Insurance is a Must-Have

Freight is moving faster and farther than ever before. Whether you’re shipping across state lines or across the globe, the risks are real. Damaged goods, delayed deliveries and rising theft rates are just a few of the challenges logistics professionals face. In this dynamic landscape, on-demand freight insurance has become an operational necessity. Here’s why:

1. Eliminate Assumptions
   Many businesses assume their shipments are automatically covered by carriers. In reality, carrier liability is limited and varies by mode. It often doesn’t reflect the full value of the cargo or account for specific causes like weather damage or pilferage. On-demand insurance puts the control back in your hands by ensuring your shipments are covered based on their true value and your risk tolerance.
   
   
2. Speed Up Claims & Recovery
   When a loss happens, time is money. Traditional claims processes can be complex, with multiple parties involved and unclear responsibilities. With integrated on-demand insurance, claims go directly to the insurer. This reduces back-and-forth and delivers faster payouts. The streamlined process improves customer experience and keeps operations moving forward without delay.
   
   
3. Protect Margins & Customer Trust
   Uninsured or underinsured shipments can wipe out margins in an instant. One damaged load or stolen trailer could mean thousands in unrecoverable losses. Beyond financial impact, failure to deliver on time or in full affects your brand reputation. Offering reliable, insured shipping options strengthens customer relationships and shows your business takes risk seriously.
   
   
4. Data-Driven Insights
   Modern insurance platforms are not just reactive. They are intelligent. They integrate with your freight tools to track covered shipments, highlight high-risk routes and identify patterns in claims or damage. This visibility helps you make smarter shipping decisions, optimize carrier selection and proactively manage risk across your network.
   
   
5. Strengthen Risk Management
   Freight insurance is not just about recovering losses. It is about preventing them. Integrated tools like real-time tracking, geofencing and automatic alerts create a first line of defense. If a shipment deviates from its expected path or enters a high-risk zone, you are immediately notified. With coverage in place, you are not only monitoring the load, but you are also protecting your business.
   
   
6. Scale Confidently
   As your shipping volume grows, so do the risks. Managing insurance manually across hundreds or thousands of shipments becomes unsustainable. On-demand insurance scales with your operations, providing automated coverage that keeps pace with your growth. It is a cost-effective way to protect your business as you expand into new regions, new partners and new challenges.
   
   
7. Support Compliance and Contracts
   Some customers and supply chain partners require proof of insurance for high-value shipments. With on-demand tools, you can instantly generate certificates of insurance that meet contract requirements and avoid shipment delays. It also provides a clear audit trail to support compliance and reporting needs.

Is It Right for Your Business?

The short answer should be yes. Whether you’re a high-volume Shipper moving time-sensitive commodities or a 3PL working with a variety of clients and carriers, on-demand freight insurance brings value to your operations. But the true fit depends on how you ship, what you move and how much risk you’re willing to absorb.

If you ship high-value goods or items sensitive to temperature, handling or timing, insurance is non-negotiable. Pharmaceuticals, electronics, food products and industrial equipment all face heightened exposure during transit. A single damaged shipment could impact your customer relationship and bottom line. With on-demand insurance, you get immediate protection that adjusts to each shipment, so you’re never overpaid or under-covered.

If your freight mix includes Truckload, LTL, Final Mile or Parcel, and especially if you’re using a multi-mode strategy, having one integrated way to insure all shipment types simplifies your process and adds consistency to your risk management approach.

For businesses scaling operations or expanding geographically, risks multiply. Delays, theft and weather disruptions vary by region. On-demand tools allow you to respond to that variability without slowing down your shipping processes. As your volume grows, automation becomes essential. Manual insurance tracking can’t keep up, but integrated coverage within your TMS does.

And for brokers or 3PLs, offering insurance as part of your service bundle strengthens your value proposition. It positions you as a full-service logistics partner while generating new revenue streams and reducing post-shipment headaches. It also helps build long-term trust with your clients who rely on you to keep their freight secure.

If you’ve ever experienced a costly claim, a delayed settlement or a client dispute about liability, this is your sign to explore a more proactive approach. On-demand insurance gives you flexibility, speed and control over how you manage risk … shipment by shipment.

Seamless Protection with Insure-on-Demand in LIVE Connect

Protecting your shipments shouldn’t require extra steps, third-party logins or manual work. That’s why the Insure-on-Demand tool within Banyan Technology’s LIVE Connect® platform was built to integrate directly into your shipping workflow, making it easier than ever to secure coverage when and where you need it most.

With Insure-on-Demand, you can instantly quote and book cargo insurance right alongside rating and dispatching your shipments. There’s no need to toggle between systems or re-enter shipment data. Coverage is embedded into the process, ensuring that every load is protected without slowing you down.

What sets Insure-on-Demand apart?

• Flexible Provider Options
  Choose from vetted, industry-leading all-risk coverage or connect your own provider. This flexibility means you’re not locked into one solution and can match your insurance coverage with your operational needs.
• Instant Coverage Across All Modes
  Whether you’re shipping Truckload, LTL, Final Mile or Parcel, coverage is available the moment you quote. You get real-time visibility into insurance costs so you can make informed decisions at the point of booking.
• No Redundant Data Entry
  Because it’s built directly into LIVE Connect, Insure-on-Demand eliminates the need to enter the same shipment data twice. It streamlines the workflow and keeps your operations efficient and accurate.
• Auto-Generated Insurance Certificates
  Once coverage is accepted, insurance certificates are automatically generated and tied to the shipment. These documents are readily accessible for compliance, reporting or claims, saving your team time and reducing paperwork.

Added Value for Shippers and 3PLs

Insure-on-Demand is more than an add-on. It’s a business tool that helps you manage risk, control costs and improve service. It reduces the financial burden of uninsured losses and provides transparency for you and your clients. When a claim arises, automated processes help speed up resolution and minimize disruption.

By making freight insurance available on demand, you empower your team to be proactive instead of reactive. You gain confidence that every shipment has the right level of protection, backed by real-time insights and instant access to documentation.

Whether you’re trying to reduce claims, meet contractual obligations or simply improve your shipping reliability, Insure-on-Demand gives you the protection you need without complicating your workflow.

To start using Insure-on-Demand in LIVE Connect today and simplify how you manage risk, visit banyantechnology.com.