Transportation companies are generally responsible for storing and delivering products from one location to another. Despite often being in possession of these goods for a long period of time, they rarely ever actual own these products. Therefore, they may be held financially responsible if these goods get damaged, lost or stolen. Bailee liability insurance may provide monetary assistance during these situations.
A business that sells or purchases goods may hire a delivery service to transport the product to its destination. Therefore, they rely on the transportation company to deliver everything in perfect condition. If that does not occur, they may sue the transportation service for failing to meet their responsibility.
Legal costs tend to be very expensive. Even if the transportation company is found to not be at fault, attorney fees often add up. Sometimes, the company may be forced to pay for the full cost of the goods. Other times, they may choose to settle for a smaller amount. In any situation, they will generally end up having to pay a significant amount. Bailee liability insurance is there to protect these companies during such circumstances. Some policies may pay for legal costs, while others may only pay for the actual products lost or damaged.
Regardless of their needs, it’s often important for delivery companies to protect themselves financially. Having a good insurance policy can help them achieve this.