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Why Do I Need Transport and Logistics Insurance

Why Do I Need Transport and Logistics Insurance
Why Do I Need Transport and Logistics Insurance

Over half a million Australians work in the transportation and logistics industry across industries like road transport, warehousing, logistics and stevedoring. Whether you operate a national fleet, Perth-based courier service, international shipping company or local warehouse, your role in Australia’s supply chain is vital.So it’s equally vital that your business is protected.Transport and logistics insurance is essential to keep you on the move. This type of cover prevents accidents and claims from crippling your business.So if you have a stake in the sector, keep reading to find out how a tailored transportation and logistics insurance policy helps prevent delays, losses and out-of-pocket expenses.

What is transport and logistics insurance?

Transport and logistics insurance is a tailored business insurance package covering the vehicles, stock and personnel involved in moving and storing just about anything.The sector is diverse, and every business is different, so there is no one-size solution.In other words, a transport and logistics insurance policy in the mining industry will look very different to one in storage.Optimising insurance cover is a specialist skill requiring detailed knowledge of the industry and risks.

Who is it for?

Transport and logistics insurance is not industry-specific.Although the name might make it seem like “transport and logistics insurance” is only relevant for operators in those specific industries, the cover is useful for a wide range of operations.From mining to earthmoving, road and rail transport to maritime cargo, port authorities to freight forwarders, dozens of Australian industries across the supply chain benefit from the right insurance.Transport and logistics insurance is essential wherever goods, raw materials and machinery are moved, stored, shipped or loaded.And as the sector continues to grow, more businesses will benefit from this type of insurance.If you are unsure whether you need cover, contact Perth’s transport and logistics insurance experts, Connect Business Insurance, for advice.

What does it cover?

A tailored transport and logistics insurance policy covers the vehicle used to transport goods, the goods themselves, and the people behind the wheel.Every policy is different depending on the industry and policyholder’s requirements.But in general, transport and logistics insurance covers:

  • Vehicle damage, including accidents and vandalism
  • Mishandling of stock during loading and unloading
  • Accidental damage
  • Fire, flood and lightning strikes
  • Non-owned trailers
  • Downtime
  • Accessories
  • Windscreens

Included in a comprehensive package are the mandatory policies you need to operate on the right side of the law, plus tailored cover to minimise the financial risk of an unforeseen event.

  • Worker’s compensation insurance: Legally required cover to protect employees in case an accident, illness or injury takes them off the job.
  • Public liability insurance: Often compulsory for logistics and warehouse providers, this type of insurance covers third-party claims for injury, death and property damage.
  • Carrier’s liability: A special insurance covering loss, damage or delay for the goods transported.
  • Commercial motor vehicle insurance: Cover for the vehicle or fleet your company relies on to transport goods, including trucks and trailers, maritime vessels and freight trains.
  • Marine cargo insurance: Special cover for the shipping industry, including port authorities and any business relying on maritime transport.
  • Plant and equipment insurance: Insurance for equipment used to load and unload goods, including cranes, forklifts, earthmoving machinery, hired equipment and more.

There are even specialised liability policies for warehouses and freight forwarders. We have gone deeper into the different types of insurance bundled into a transport and logistics policy in a previous blog.

What exclusions do I need to know about?

There are a few exclusions that tend to be standard in transport and logistics insurance, including:

  • Loss of market value
  • Shipment delays
  • Acts of war
  • Driver’s personal property (in some cases)

Each insurance policy will specify the items and events that are not covered.We also tailor transport and logistics insurance policies for Perth businesses to exclude specific unnecessary items.

The fine print: What you need to know to become a transport and logistics insurance expert

Specialised transport insurance

Due to the complex nature of Australia’s transport and logistics sector, we are pleased to offer specialised cover for exceptionally risky work.When planning your business insurance, it pays to look closely at the specifics of the operation.Does your business transport hazardous materials like fuel or chemicals?Are you involved in freight forwarding?Will goods travel internationally?Does stock sit in cold storage?Depending on the answers to these and similar questions, we may recommend an addendum that ensures your business is not exposed to avoidable risk.

Single transport insurance

Single transit cover is available in place of an annual policy. Typically, a single transit policy covers goods from the moment they leave storage until they arrive at the intended destination.Although an annual policy is more affordable and comprehensive for most businesses in the sector, single-trip policies can sometimes be practical.

How we calculate transport and logistics insurance costs

Like any business insurance policy, the premium is calculated individually.The factors that can influence the price of your policy include (but are not limited to):

  • Vehicle type: Transport and logistics insurance can cover courier vans to maritime vessels with a sliding cost scale. 
  • Purpose: Whether the vehicle is hauling iron ore in the Pilbara or carrying mail in Perth suburbs will influence the insurance quote.
  • Operator experience: We look at your drivers’ backgrounds, including their safety records, experience behind the wheel and the type of vehicle they run.
  • Risky routes: Long-haul drives through the outback and international shipping routes are inherently hazardous, while suburban couriers face proportionally lower risk.
  • Individual risk factors: Beyond the standard criteria, a good insurance broker will get to know your business to optimise the cover for your situation.

We tailor transport and insurance policies to suit your requirements, providing comprehensive cover with no unnecessary extras or hidden costs.

Ready to roll?

Connect Business Insurance is Perth’s transport and logistics insurance expert.We tailor policies to suit your specific needs, taking care to provide comprehensive cover at the best possible price.If you need a new policy or want to explore your options, contact Connect Business Insurance to speak with a local insurance expert today.

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