The Logistics of Bailee Insurance
Bailee liability insurance might be considered imperative for a transportation firm, but are you also aware of the importance of bailee coverage for a logistics company? When you’re managing the inventory and distribution of another company’s property, you may be held responsible for the condition of the merchandise in your care. It’s likely your liability coverage won’t include protection from loss that is not part of your business operation. Rather than expose your company to financial risk, you might want to consider including bailee insurance.
Bailee insurance protects a business from financial liability of a customer’s property. This type of protection makes a lot of sense for a logistics firm which not only transports customer merchandise but might also store it as well. While in storage, merchandise can be exposed to numerous risks including fire, water, theft, and wind, and a company is held financially responsible if something happens to destroy, damage, or lose the property. A single loss could ruin a business and bailee liability insurance could prevent this occurrence.
Proactive measures such as a sophisticated alarm or surveillance system, fire prevention measures, separate hazardous waste storage, and electrical maintenance are areas a company could possibly improve or put into place. Adding these protocols along with bailee liability insurance as part of a risk management program could also set you apart from your competition.