Your products are the life blood of your business. Their secure movement through the supply chain, from manufacturing point to final delivery to your customer, is critical to your success. That’s why it’s important to understand your third party warehouse insurance.
If your goods are lost or damaged while in transit, or in the custody of a third party warehouse provider:
- You could be facing loss of revenue of tens or hundreds of thousands of dollars without the ability to fully recoup those losses.
That’s why asking the right questions, assuring that you have the right coverage, and choosing the right transportation and distribution partners are such critical decisions.
At Christopher Morgan Fulfillment 3PL Warehouse, our clients often ask us these questions:
- Kinds of warehouse insurance we carry?
- The coverage we provide?
- What insurance decisions they should make when using our transportation and warehouse solutions?
This type of insurance, means that the provider is responsible for the safe storage of your goods and must provide “reasonable care” to your goods while in their care.
It’s important to note the insurance provider covering the policy will only pay your damages if negligence is the cause of the loss or damage.
Under this kind of insurance policy, you are still fully responsible for your goods for any other kind of damage or loss of goods.
It is especially important to recognize that warehouse providers do not normally intend to fully insure your goods. They are instead taking responsibility for negligence.
Almost all warehouse contracts substantially limit liability. If your product is especially valuable, that liability level may be far below the actual cost of your goods, and not cover your loss, even if the warehouse is 100% negligent.
At CMorgan Fulfillment Services:
we take extreme care to assure that our clients understand exactly what benefits and limitations we offer. Good partners recognize that risk management is a role that both parties share in a business relationship.