Warehousing and Logistics Insurance

Risk Factor

Any commercial property is at risk for damage due to fire or other events. Not only are your building and other structures on your property susceptible, everything inside from office furniture to inventory is at risk as well.

Solution

Commercial property insurance can help protect the property your business owns or leases, including things like equipment, inventory, furniture, and fixtures. Whether you own your building or lease the space, commercial property insurance can be purchased separately or can be combined with other necessary coverage to protect your business’ physical assets.

Note: Actual policies must be consulted for specific terms and conditions.

Risk Factor

If one of your employees receives an injury or becomes ill due to a work-related occurrence, you are required by law to have the proper coverage in place.

Solution

Workers’ compensation insurance protects your employees in the event that a job-related injury or sickness occurs during the course of their employment. This coverage is required by law, so be sure that your business has it.

Note: Actual policies must be consulted for specific terms and conditions.

Risk Factor

You have many exposures associated with your business vehicles, whether they’re owned or leased. With a fleet of cars, trucks, vans, or other types of vehicles used in the course of business, a single accident can potentially put your business in financial jeopardy.

Solution

Business auto insurance provides coverage for vehicles owned or leased by a business and provides coverage for bodily injury, property damage, and other exposures, as well as comprehensive and collision coverage.

Note: Actual policies must be consulted for specific terms and conditions.

Risk Factor

Warehouses typically have a variety of equipment to help keep the business running. This could include conveyors, robot and picking systems, forklifts, sorters, as well as HVAC and refrigeration systems. If any one of these breaks down, you could be faced with hefty repair or replacement costs, as well as a potential loss of revenue or damage to inventory.

Solution

Equipment breakdown insurance can help cover repair or replacement costs of certain equipment in the case of a covered event. Some policies also cover damage to goods you are responsible for, as well as costs associated with an interruption to your business.

Note: Actual policies must be consulted for specific terms and conditions.

Risk Factor

Warehouses can hold all sorts of items and materials, including hazardous and flammable materials. If there is a leak or spill, you’ll be responsible for the cleanup and any damage caused to not only your own property but the property of a third party. Cleanup can be very costly, even if the property damage is minimal.

Solution

Pollution cleanup insurance offers protection in the event of a chemical or hazardous material spill or leak. It may cover the cost of the actual cleanup, damage to first- or third-party property, and possibly regulatory liabilities.

Note: Actual policies must be consulted for specific terms and conditions.

Risk Factor

On average, it’s estimated that three out of five businesses will be sued by their employees. While there is nothing you can do to prevent someone from filing a lawsuit, you can limit the costs of defending a legal claim with proper insurance coverage.

Solution

Obtain employment practice liability insurance (EPLI) to protect your business from alleged employment-related acts such as wrongful termination, failure to promote, discrimination, and sexual harassment.

Note: Actual policies must be consulted for specific terms and conditions.

Risk Factor

If you have to temporarily suspend your business due to a covered peril, you’ll likely face significant revenue loss. You may also incur extra expenses if you have to relocate your business. However, you may also have to halt operations if there’s a similar covered loss at the location of a supplier or customer. For example, if you store and handle goods made by a particular manufacturer and they have a fire that causes them to shut down, you may not have the inventory to store and handle, which will hurt your business.

Solution

Business interruption helps to cover lost revenue and extra expenses that arise from a covered peril. This could include replacement of income, payroll, temporary office space, or other costs. Contingent business interruption covers losses you incur as the result of a covered peril occurring at the location of a customer or supplier your business depends on.

Note: Actual policies must be consulted for specific terms and conditions.

Risk Factor

What happens when your business faces a large liability loss that exceeds the basic limit of your standard policy?

Solution

A commercial umbrella insurance policy provides high limits of insurance, typically between $2 million and $10 million. Coverage is extended over your general liability, workers’ compensation, and business auto insurance. It provides a great safety net and helps to secure protection for your business.

Note: Actual policies must be consulted for specific terms and conditions.

Risk Factor

A major part of your warehousing and logistics operations includes taking temporary possession of the property of others. While these items are in your care, they can be damaged or stolen, resulting in significant loss for your business.

Solution

Often a part of warehouse legal liability policies, bailee and property of others coverage offers protection in the event of property damage or direct physical loss of items you are responsible for. This could include losses at your main warehouse or overflow facilities, or even during the process of various services you provide including storage, package, labeling, or transporting.

Note: Actual policies must be consulted for specific terms and conditions.

Risk Factor

The internet has spun a whole new web of liability exposures. E-commerce, social networking, cloud storage, and other technologies bring great benefits to large and small warehousing and logistics companies alike. But with these benefits also come challenges, including protection of privacy, data, and the financial information of your customers.

Solution

Cyber liability insurance protects your practice in the event of unauthorized access to electronic data or software within your network. It also provides coverage for spreading a virus, extortion, accidental release of personal identifiable information, and resultant damage caused by a lost or stolen laptop or other mobile device. This coverage is quickly becoming more and more important as you embrace technology to help run your business.

Note: Actual policies must be consulted for specific terms and conditions.

Risk Factor

Nobody wants to make mistakes. But the fact is, they do happen. For example, the wrong products could be packed and shipped, delays could lead to a breach of contract, or there could be a labeling error. Sometimes a client will feel you’ve made an error and file a lawsuit that must be defended against.

Solution

Errors and omissions (E&O) coverage will provide coverage for legal defense and damages awarded in the event you are sued for a wrongful act. Even meritless claims must be defended and most defenses are costly.

Note: Actual policies must be consulted for specific terms and conditions.