Flycovr Offers Advice for Avoiding Risk in 2023

by Sam Kirtikar, CEO & Co-founder of Flycovr

Flycovr says when the odds don’t look great, don’t gamble and advises securing operational growth in 2023 by avoiding unnecessary risk.

The hurdle of the post pandemic global supply chain were heavily publicized, with four key areas consistently mentioned that could reduce frustrations. These were positive changes across procurement, logistics and operations; accurate data, better visibility across suppliers and the economic recovery of key industry areas.  

All very true, but with one very important omission in a post pandemic world and an unpredictable financial economy. The omission can be described in many forms whether financial exposure, risk management, contractual transparency or quite simply, vulnerable insurance gaps.

Businesses must take proactive steps to protect their commercial interests and avoid unnecessary risks. Not in case of another global crisis, but because of the everyday risks that are negatively affecting the bottom line across global supply chain operators.

Thousands of critical parts are required at short notice around the globe every week, and with e-commerce quickly increasing across the market, the risk exposure for critical cargo is only going to become more apparent. Flycovr’s partner, Loadsure, have stated that “over 60% of the U. S. freight market alone, is underinsured” and therefore at risk.

Whilst businesses seemingly spend so much time on the development side of operational growth, why is it that the risk of financial or reputational damage is so often ignored when it comes to insurance.

Flycovr says it has found three main factors that lead to underinsurance:

  • Lack of knowing or awareness of such risks
  • Complicated and laborious purchasing requirements 
  • The cost versus perceived benefit

This is all of course wrapped up in cynicism around insurers and their perceived lack of understanding around a complex aviation market, the company stresses.

However, aircraft parts in transit, are a common example of this area being misunderstood, when the liability of shipments is confused and the cover in place by the carrier is totally insufficient. Often, simple carrier insurance is done on weight and the usual policy holders are simply underinsuring, or certainly overpaying. Either way, the critical aspect, and aircraft part specifications, are not being considered fully.

Do you ever read your carrier policies? Traditional policies often exclude things such as acts of God or employee theft and across our supply chain, proving liability is a headache. Even when you can provide it, the claims process can be painful. “In some scenarios, we often see claims simply being ignored in fear of increased premiums” says Sam Kirtikar, founder of Flycovr.

As a matter of course, Flycovr encourages you to review your policies, and if you haven’t insured your shipments – ask why not. Especially when the market now has aviation specific solutions available to do this in one click.

Flycovr themselves offer access to lightning fast, all-risk, per-load smart coverage – brought to the aviation market specifically and available for instant access. Provided by Loadsure, this A.I. driven cargo cover is hands down the most innovative on the market and a solution to the global aviation supply chain underinsurance crisis.

Dalo Chouhan, CEO of Freight Source Logistics (FSL) now includes Flycovr in their proposition and offers digital cargo insurance as part of the offering to all FSL aviation customers to eradicate that risk and liability concern, “Our focus is on speed, security and efficiency of the supply chain, so offering global digital insurance cover on all shipments is an absolute value-added service to all FSL customers.”

Overall, each corner of the market plays a role in supporting a more sustainable supply chain and the aim is to create awareness where unknown risk exposures are rife.

Whilst the industry takes heed of these focus areas mentioned above and proactively enhances its operational delivery into 2023 – the message from us is to make sure this is all secured with the cost effective simple innovative aviation insurance solutions that will avoid all the financial investment and commercial growth being undone in one simple moment.