10 different types of transportation insurance for logistic companies
Transportation is a need to move products from destination to destination. Logistics companies are tasked with ensuring the product’s safety and minimizing shipping times. In addition, they keep the costs of transportation low, turning a profit.
The risk of making mistakes exists in any industry. In transportation, a logistics error or human oversight can be exceedingly costly. Fortunately, insurance can provide peace of mind for those working in transporting goods. Transportation insurance is ideal for protecting your assets, regardless of their destination.
Here are ten types of transportation insurance available to logistics companies:
1. General liability insurance
General liability insurance covers damage done while an employee operates a company vehicle. It is a basic form of insurance that covers claims for injury or property damage to others from transportation and warehousing activities. This type of insurance is the minimum you want for a logistics company. However, you will need more specialized insurance to cover your bases.
2. Fleet insurance
Fleet insurance is another relatively general type of transportation insurance. It covers logistics companies with five or more vehicles needing insurance. Also, it allows you to get a potential discount across all your vehicles. Fleet insurance is typically used in commercial autos, such as limousines or taxis. This comprehensive form of insurance makes it possible for all business vehicles to be covered under a single policy.
3. Auto haulers insurance
Hauling vehicles is a serious business. Anyone can run into trouble when transporting cars and vehicles. Auto haulers insurance will kick in if costs are incurred for loss, damage, and injury when your vehicle or cargo is involved in a collision or damage with a third party.
Some potential issues covered include flying debris, collisions, thefts, pothole impacts, inclement weather, and more. Under auto haulers insurance, you are safe.
4. Dry van insurance
Dry van insurance applies to trailers transporting dried goods. Dry van insurance policies work in different ways. Usually, they insure third-party property under your control during storage and until it is delivered. This type of insurance is prevalent and typical in commercial truck transportation, ensuring any accidents on the road don’t negatively impact the value of the transported goods.
5. Temperature-controlled trailers insurance
Like the opposite of dry van transportation, a temperature-controlled trailer can help keep greenery and plants alive. They keep food frozen and fresh, preserve certain products at room temperature, or haul perishables and delicate products that require extra care. Temperature-controlled trailers insurance ensures that the financial investment in the cargo is protected no matter what scenario plays out during transportation.
6. Flatbed trailer insurance
Flatbed trailer insurance covers your load, vehicle, and driver. The coverage is for when something unexpected happens while out on the road, especially if it involves property damage or a personal injury. All costs and compensation are already handled through this type of transportation insurance. Flatbed trailer insurance is not required by law. Yet, this insurance covers the hefty damages or expensive losses in the worst-case scenarios.
7. Tankers insurance
A tanker can haul many things, from hazardous materials to dangerous goods requiring extra precautions. Tankers insurance prioritizes driver safety, cargo security, and also environmental protection. Any number of scenarios can play out, which are very costly. Tankers insurance guards against the entrance and exit ramps that are improperly installed. They also cover overly bumpy roads or sudden stops that could cause contents to shift and compromise vehicle control.
8. Container transportation insurance
Shipping containers get sent from ports to rail yards, and some unique transportation risks are involved in the journey. Issues with loading and offloading, improper securement and any hazards encountered along the way can mean major financial losses. When cargo is lost or damaged, your insurance will cover it. It provides security to you and your clients so that their finances are protected.
9. Oversize trailers insurance
Oversized trailer insurance applies to companies transporting wide, long or bulky loads. You need a specific type of insurance for big cargo, just like it requires drivers to be specially trained to handle over-dimensional loads. When cargo is leaning over the sides of a flatbed, there’s a higher-than-average risk of leaning, toppling, or striking another object during transportation. This scenario is where oversize trailer insurance protects you.
10. Livestock transportation insurance
Some logistics companies work with livestock with their unique set of risks. Livestock transportation insurance offers coverage in the face of accidents and vehicle breakdowns, as well as if there are animal escapes, injuries, and even death. Safety is critical when live animals are being transported. If something happens, the insurance will cover your company and your driver, minimizing any worry that there could be the possibility of an injury or accident.