Insurance

What is Logistics Insurance?
Running a transportation or logistics business can be complicated enough, but when you add insurance to the mix it can seem impossible.
Do you have logistics insurance?So how confident are you about your logistics insurance and are you sure it is keeping up with the increasingly diverse world of logistics?
There is no such thing as a typical logistics organization. While logistics operations vary more than almost any other business sector, there are some typical coverage requirements.
These coverage requirements are:
* Responsibility for lost/damaged cargo
* Liability for errors/omissions (including delays and unauthorized or failed delivery)
* Third party liability
* Coverage for regulatory violations (customs problems, pollution or occupational safety problems)
* Covering disposal costs after accidents, including quarantine/disinfection/pollution controls where necessary
* Defense costs – vital where third parties are involved and where supply chain issues may require complex investigation to determine liability for loss/damage/regulation breach.
However, the regulatory regime covering each organisation's full scope, customer base, geographic location and logistics means that even within such typical requirements there can be significant differences in risk.
You Can Think of Logistics as Service Delivery
It's easier to evaluate the quality and coverage of any logistics insurance you purchase if you think of everything you provide as a service rather than a core part of your business offering.This allows you to ensure that you purchase a policy that will cover you for each specific service you provide. However, the downside to this is that you may end up with a collection of sometimes overlapping policies rather than one simple policy provision.
The Basis of Logistics Insurance
Common policy elements for transportation, warehousing and distribution services include Commercial General Liability, which insures your headquarters against risk, and an Errors and Omissions policy element, which protects you from any professional liability you encounter while working with customers.
Logistics Insurance for Transporters
Shippers may have a vehicle cargo policy that covers goods lost or damaged in vehicles during transit.This has become an increasingly necessary policy add-on for HGV drivers working in Europe. Because damaged cargo sometimes occurs as a result of migrant boarding attempts.
Benefits and Risks of a Comprehensive Logistics Policy
Specialist insurers are beginning to offer single policies that aim to cover every risk an operator faces.The benefits of these policies are clear and far-reaching. Since they work on an annual basis, they never leave the operator without the necessary coverage.The disadvantages are also obvious. These comprehensive policies can be more expensive than insuring the risk on a case-by-case basis, and there may still be gaps in coverage if an operator is involved in areas that do not appear to be covered risks.Areas such as labeling and vendor management, which are increasingly sought after by customers, will not be covered by the comprehensive logistics insurance policies currently available on the market.
Private Logistics Insurance
It is common for an insurer to offer a specific policy that meets the needs of the insured operation.For example, an air transportation company may also be involved in freight transportation or have a road transportation element. A specific policy will cover each of these areas and ensure there are no gaps in liability coverage.
What Does Logistics Insurance Cover?
Logistics insurance is an overarching category that provides many different types of protection for you and your company, and this category includes the following options:
* Shipping company responsibility
* Errors and omissions in submission
* Property and other items
* Conditional shipping
* Warehouse legal liability
* Customer reservation
* Business interruption due to logistical problems
Although logistics insurance will vary depending on your situation and needs, all of these policy options should be available.Most will let you tweak your options to choose a detailed, fine-tuned coverage you can more easily afford.But what kind of companies need this insurance?Many companies require insurance, including:
* Retailers
* Shipping experts
* Rental fleet experts
* Medical facilities
* Truck companies
* Anyone who sends items
In essence, logistics insurance protects entire businesses by ensuring that deliveries of goods go as smoothly as possible.More importantly, these policies also protect the Logistics company by covering any liability they may incur.For example, if you ship medications to the wrong facility and someone gets injured as a result, your logistics policy should help protect you from lawsuits and other problems.

Is cargo insurance worth it?
Having considered all risks, you will need to make a final decision whether to purchase logistics insurance or insure your shipments yourself.
The best approach is to weigh all potential costs of a loss against the cost of insurance.
There are a variety of plans and insurance companies that can help you decide. We specialize in professional insurance services throughout Türkiye.If you need our help finding the best insurance services available to you, just contact us today.