Global movement of goods can be difficult with the many risks involved. Still, a silver lining has been discovered by companies, especially small- and mid-sized enterprises that keep growing in spite of a lack of protection for their inventory in transit.
UPS Capital,® through its wholly owned subsidiary, UPS Capital Insurance Agency, Inc., has been innovative with risk solutions and insurance products, with a focus on small businesses that need protection for goods in transit. A number of its customers fall into the wholesale trade category – companies like Tacori Enterprises, an artisan jewelry wholesaler based in Glendale, Calif.
Daniel Popa is Tacori's shipping and promotional displays manager. Each year, he ships 12,000 packages containing high-end, specialized jewelry within the United States, Canada, the Caribbean and the United Kingdom.
Some months back, as a customer of another shipper, Popa felt frustrated over that carrier's $25,000 cap on insurance per package. The limit meant complications. Why should he send engagement ring pairs in separate shipments? Why couldn't he simply insure packages for greater sums?
UPS Capital, the financial arm of UPS, had a creative answer for Tacori Enterprises. Through UPS Capital Insurance Agency, Inc., "[we] came up with a way to cover the first $5,000 of a package with Flexible Parcel Insurance, then cover the balance with Cargo Insurance – up to $100,000 in the U.S. and $50,000 internationally," says David Spain, senior business development manager with UPS, who worked with Popa to craft the solution and make it seamless to the customer.
"We were able to save this customer $20,000 to $25,000 a year in shipping, and also give Tacori better coverage," Spain says. "We believe we can create a solution for virtually any customer to handle any transportation risk."
Seeing it in action is believing
Rockel Williams, senior marketing analyst for UPS Capital, says customers value the creativity UPS Capital Insurance Agency, Inc., brings to safeguarding their supply chain – especially today.
"Other transportation carriers may offer a standard, low-value protection product that does not meet the needs of the customer," she says. "UPS Capital Insurance Agency, Inc., is more closely integrated with the transportation industry and consequently more able to design risk solutions for customers, however they move their goods."
A newly redesigned site makes it easy for potential and existing customers to explore the many financing and insurance options available through UPS Capital and its subsidiaries. The site features animated demos and a variety of articles to show customers how UPS Capital can improve cash flow, protect goods and accelerate and safeguard payments.
Popa doesn't need the tutorials, as he's already used the offerings. "Choose your insurance partner carefully," he advises, "and ensure you get a great rate, great coverage and great service.”
*Insurance is offered through licensed insurance producers affiliated with UPS Capital Insurance Agency, Inc., and other affiliated insurance agencies. UPS Capital Insurance Agency, Inc., and its licensed affiliates are wholly owned subsidiaries of UPS Capital Corporation. The insurance program is governed by the terms, conditions, limitations and exclusions set forth in the applicable insurance policy. Please consult the policy for the exact terms and conditions. Insurance coverage may not be available in all jurisdictions. Insurance is underwritten by a national insurance company.