Logistics insurance is a substantial component in all kinds of businesses. Without it, a company might lose confidence, customers, and indeed, money. You might be wondering, what does the logistics insurance mean? It is a company’s method of keeping itself away from logistics catastrophes.
Who gets blamed if a particular shipment gets lost? It’s neither the seller, nor the buyer. One who takes all the blame is the company that shipped that product. That’s the reason that a proper logistics system is very important if your business involves shipping. But it works like Law of Murphy: if something can go wrong, then it will definitely go wrong. There’s little that we can do if it already has happened. Both sellers and buyers, particularly of large orders, usually will have insurance for covering their losses. In that case, the shipping company is not covered. This is the reason that logistics insurance is very essential. Even the middleman has to make sure that they are covered.
Imagine about this, your most reliable truck driver is running down the highway and suddenly a youngster who was texting while driving skids into the truck’s side wheel. Nobody gets hurt and neither driver did need to stop. Unfortunately, this caused the truck driver to swerve. Consequently, some of boxes in the truck were falling behind. Now, who is at fault? The damaged item has to be received by the buyer along with a check. But you don’t want that check to come out of your wallet. When precious item takes damage in transit, it’s essential to have insurance for covering that damage. You might have already known about cargo insurance. It’s also sometimes called as freight insurance. Basically, it is just the same. Logistics insurance and cargo liability insurance at GSIS simply cover the whole process, from the beginning to the end.