How Transportation & Warehousing and Insurance Connect:
If you work in the transportation and warehousing industry, then you already know that much more goes into the field than simply shipping something from one location to another.
It is not enough to organize this shipment. You must also protect the goods both before, during, and after shipment. This is where insurance comes in.
Read on to understand what insurance you may need.
What Businesses in Transportation & Warehousing Need Insurance?
There are many different transportation and warehousing businesses that can utilize transportation and warehousing insurance. Some of the most common that are found include but are not limited to:
- Railroad transportation
- General and specialized freight trucking
- Marine cargo handling
- General warehousing
- Refrigerated warehousing
Still not sure what you need?
CoverWallet's Insurance Checklist , you'll find a list of insurance types needed for your specific business or industry.
What Kind of Insurance Do You Need in Transportation & Warehousing?
The specific kind of insurance you need in this industry depends completely on the type of transportation and warehousing you provide. Take a look at some of the most common forms of insurance in the industry to see what may work for you.
Commercial Vehicle Insurance
Insurance for Your Own Fleet of Vehicles:
This type of insurance can protect your business from a range of liability issues and property damage. If you have a transportation business, you likely have a fleet of vehicles and your drivers are never guaranteed to not get into an accident. That is why it is important to protect your assets with this type of coverage.
When Should You Get Commercial Vehicle Insurance?
This is something you should have as soon as you have a commercial vehicle for your business. If you transport people or hazardous material, you may even be required to purchase it.
If you have an employee who is driving a commercial vehicle and gets into an accident that damages the vehicle, this type of insurance would assist in the costs for repair.
Other things to note…
Many commercial vehicle insurance policies have restrictions on who can drive under their policy. You will need to take a look at this and ensure all of your current employees would be covered under the policy.
Third Party Property Insurance
Limit Your Exposure Due to Loss of Products:
If you transport or store merchandise or products for a third party, then you have the responsibility for those products while they are in your possession. Third Party Property Insurance can protect you if anything were to happen while you had the products. This type of insurance coverage usually protects you in the case of natural or man-made disasters, infestation, contamination, theft, fourth party warehouse arrangements, and even exposure to extreme temperatures and loss of refrigeration.
When Should You Get a Third Party Property Insurance Plan?
This types of plan is something you should have if you are transporting or storing goods for a third party. It can protect you from things that you cannot control so that you do not eat the cost of the loss for the products.
If you are storing goods in a warehouse for a third party company and there is a flood that ruins a portion or all of the goods, this type of insurance would protect you from having to cover the cost of the loss to the third party.
Other things to note…
This type of insurance is only designed to protect you if you work with third parties to provide transportation and warehouse storage. There are other type of policies you can find if you transport and store your own goods.
Inland Marine Insurance
To Protect Your Cargo When Not Shipping on Water:
Inland Marine Insurance protects goods that are being shipped on trains, barges, planes, or any other way that is not on the water. It can protect you from potential loss and can even protect your goods while they are being help in custody by a bailee.
When Should You Get an Inland Marine Insurance Plan?
If you ship your goods on any other way than by water, then this is the perfect type of protection for your business and you should have this type of protection for your goods before your make any shipments.
If you are shipping a high value shipment by plane and the goods are not secured well, they can become damaged in flight. Your Inland Marine Insurance would cover the cost of the goods since they were damaged during this type of shipment.
Other Insurance Types to Consider:
- General Liability Insurance: General Liability Insurance for transportation and warehousing will protect your business from the most common liabilities such as bodily injury, personal injury or property damage.
- Umbrella Insurance: This is an additional type of insurance that you may consider based on the size and scope of your business. This is a great option if other forms of insurance do not cover the liability risks or if you have reached your maximum coverage. It can provide the additional insurance protection you need.
- Ocean Marine Insurance: This type of insurance protects your shipments while they are being shipped on the water.
How Much Does Transportation & Warehouse Insurance Cost?
The cost of insurance depends on a variety of factors. The price you will pay can be based on the type of insurance you need, the types of goods you handle, the form of shipping, claims history, age of your business, and much more.
To get an accurate quote for the insurance types you are interested in, contact us for further assistance. Once we provide a quote, we encourage you to review the policies to ensure everything you need is covered by the plan.