With continued growth in world trade, supply chains have grown more complicated and regulations governing cargo and freight transport have multiplied. The job of logistics professionals has become something like a pilot navigating a dangerous channel. For property brokers, freight forwarders and others whose job it is to manage goods and materials shipments, logistics insurance coverage acts to reinforce the hull on their businesses.
Whether a logistics company confines its efforts to a narrow market such as domestic regional transport, or it takes responsibility for overseas shipments, it exposes itself to liability claims. Abiding by state, local and international law; following health and environmental regulations; vetting and selecting among trucking companies that can be trusted to carry freight on the final leg of its journey–an error in any of these areas could result in lost, damaged or delayed goods, leaving the logistics expert open to liability claims for financial losses to the shipper.
Risks may also vary depending on the form of carrier that has been contracted to move goods. For instance, freight that travels by train is subject to different rules and regulations than apply to cargo shipped by sea, making it essential that an insurance contract be crafted to favor the modes of transport a company most often uses.
Logistics professionals are experts at maneuvering through obstacles of tight timelines and inflexible rules and regulations. Given the complexity of the work, it is no surprise that even the best will occasionally run into trouble. Logistics insurance coverage keeps transport professionals afloat should they run aground on a liability claim.