Insurance: Peace of mind that your freight is fully covered
Logistics are very complicated by nature – often we have to facilitate movement across large distances with valuable property, into various sites. Where does ownership and liability start and finish and how can you ensure that your goods are adequately covered?
We understand how essential it is that your goods remain safe, whether they are in our warehouse, or being transported. We know that your goods are your business and whilst we take the utmost care, some things are out of our control, and therefore accidents do happen.
So are your goods covered by insurance and if so, whose and by how much?
Because of the extreme variability of freight contracts it pays to ask the right questions.
It is important to be aware that the ultimate responsibility for the goods lies with the shipper. However, respectable 3PL companies work to the Road Haulage Association (RHA) terms and conditions, which give you some insurance cover. But is it enough?
RHA terms have various clauses that affect how much you’ll get reimbursed in the event of a claim.
The current RHA terms state that the maximum liability in the case of loss or damage to a consignment in transit is £1,300 per metric tonne, with that being reduced to £100 per metric tonne for goods stored in a warehouse.
Broadly speaking, if the value of your goods is less than the above amounts, then you are covered by the transport or warehouse company, if they subscribe to the RHA conditions of carriage. However if the goods are worth more than this, you will be under insured. But a word of caution… the calculation is based on the weight to value, so it’s not a given that any anything below £1,300 per metric tonne will be covered. It’s always best to review this on an individual basis.
It is essential that you make your warehouse and logistics partner aware of the value of your goods, although a reputable 3PL will always ask you the question.
In most cases your 3PL should be able to provide you with a quote for the extra cover, should you need it. Once you have received the quote, it is up to you whether you choose to pay the additional amount or carry the risk.
What about whilst my goods are in a 3PL warehouse?
Your warehouse provider is responsible for storing your goods safely whilst in their care. They should have Warehouse Legal Liability Insurance. If they are negligent in any way, you can claim for any damage on their insurance policy. However it is important to remember that this insurance usually only covers you for damage caused by their negligence. You may not be covered in the event of fire or flood for example.
Remember too, when calculating the value of the goods to ensure all parties are working on the same methodology in terms of wholesale value or retail value for example.
We understand how important peace of mind is when choosing your logistics company, so if you have any questions about our logistics processes or about your potential cover, get in touch on 01353 648222 and we’ll be happy to advise you. Your goods are at the heart of our business.