4 Types of Insurance Needed by a Logistics Company
Working in the logistics business can be rewarding, both financially and professionally. This is because logistics companies help to keep industry moving by making sure that items are where they should be when they are needed.
Logistics companies do this by planning and carrying out the transportation of goods to their intended destination. Obviously, there are potential risks involved in this process.
To protect themselves against these risks financially, logistics companies need to ensure they have the right insurance in place.
There are four types of insurance that are especially important to this type of company.
Commercial General Liability Insurance
Like many other companies, logistics providers need to invest in commercial general liability insurance. This type of insurance protects a company against financial loss that could occur if the business is responsible for property damage or personal and advertising injury caused by the operations of the business or by its employees.
Errors & Omissions Insurance
There are many challenges that come with supply chain management. Ensuring the effectiveness and efficiency of logistics is one of these challenges. This is why it’s so important for logistics companies to provide the correct information and the appropriate services.
If a company fails to do this it could be liable for legal action. Having errors & omissions insurance in place helps to protect logistics companies against such legal issues.
Commercial Property Insurance
Commercial premises are vital to most successful companies. This is certainly the case with logistics providers who rely on having a secure commercial base. Problems can occur when natural disasters such as fire happen, or when a burglary occurs.
Commercial property insurance helps to protect logistics companies should any of these disasters affect their premises.
Marine Cargo Insurance
The name of marine cargo insurance is confusing. It seems to refer to goods that are being carried over the sea. However, this is not necessarily the case. When this type of insurance was first created, it did refer mostly to marine transportation. However, these policies now usually relate to transportation by road and rail as well.
This means that this type of insurance is vital for any logistics company to have. It’s important to note that these policies do not usually specifically mention anything other than marine transportation. This is why there is normally a clause added which specifically refers to other forms of transportation.
These four types of insurance are all important to logistics companies. They help to protect the company against financial loss from potential legal action, damage to property and damage to the goods that are being transported.
Logistics companies need to make sure that they have various forms of insurance in place in order to make sure that they are fully protected. In some cases, companies may be able to find an insurance provider that will sell them a package that contains all of this different insurance. In other cases, companies may have to purchase separate insurance policies. This enables them to have complete peace of mind while they are trading.