Your products leave production facilities, travel to storage areas, get loaded into trucks and containers for transportation, and finally reach their destinations. Sometimes, damage occurs during the transit process. How do industry protocols determine who is responsible for the damages?
While 3pl Insurance can take steps to manage their customers’ transportation requirements and needs, they may still be liable for the loss of goods in transit. Transportation insurance is an option that reimburses businesses for the value of their lost product, up to a contractual limit. It is essential that you understand what coverage you are purchasing and that it is properly drafted.
Understanding 3PL Insurance: Protecting Your Logistics Operations
Managing contract logistics often requires access to confidential and protected information about the customer or carrier. Inevitably, mistakes will happen that lead to the disclosure of this information. This can result in hefty lawsuits and substantial losses. Contractual liability policies that protect against these risks are essential for 3PLs.
Warehouse Legal Liability
When you store your product in a 3PL’s warehouse, they are responsible for providing “reasonable care” and safe storage of your goods. Warehouse legal liability insurance is an important protection that allows a business to recover its property damage if the 3PL warehouse provider fails in their duties.
Many 3PL providers will also carry other types of insurances to cover their risk exposures. These include Commercial General Liability, Employers Liability, and Workers’ Compensation. Some 3PLs will also carry business interruption insurance to help cover revenue losses due to a disruption to their services. This is an important consideration for business owners looking to outsource some of their logistics management.
Gratton Warehouse Company
11005 E Cir, Omaha, NE 68137, United States
Phone: +14023399993
