Insurance Considerations for Logistics Companies

Logistics and transport companies are busier than ever these days. With the digital revolution in full swing customers are ordering products online with speedy and even same-day delivery. Gone are the days when you had to wait weeks for your parcel to arrive in the post.

That’s why a logistics business can be a lucrative one – provided you have all your ducks in a row. If you are thinking of starting a logistics company or buying one that already exists, the first port of call is to check that your fleet, warehousing, product and supply chain is covered comprehensively.

Start by writing down your workflow process and identify where the areas of risk lie. These will include theft, fire, accidental damage and professional liability, all of which should be covered with suitable insurance.

In fact, as a logistics owner you will need cover for almost every aspect of your business. Let’s take a look at some of the risks that will need cover.

Courier Insurance

If you run a courier business your first priority should be ensuring that your fleet of courier vehicles have adequate cover.

Whether your delivery vehicle is a car, lorry, motorcycle or transit van, you will need to ensure it’s fully insured. To help you save time and money on your courier insurance Quotezone offers a free online quote comparison system, which helps you find the best policy by comparing quotes from a range of providers.

Haulage Insurance

Larger lorries that cover longer distances require different insurance cover than vehicles doing multiple pick-ups and deliveries in a single area. This is different to courier insurance, which we discussed earlier.

You may need specific cover for lorries that transport food and beverages. Lorries with cold storage compartments will cost more than courier vehicles as they are specialised and more costly to repair or replace.

Goods-In-Transit Cover

Not only do you need to insure your vehicles but the goods in transit too. Whether your goods are of low or high value, or a mixture of both, you will need insurance cover on the goods you collect and deliver. Imagine not insuring your goods and doing a big delivery of audio or cellular mobile devices and your van is robbed or your goods are damaged in an incident. Ask yourself, how much it will cost to replace the stolen or damaged equipment?

These unfortunate incidents happen, and you must be prepared for them. Financial losses of this kind due to not insuring your goods properly can be monumental. Be prepared to pay a higher insurance premium for high end goods.

Public Liability Cover

Courier services work with the public daily, so you will need public liability insurance. This type of insurance covers incidents or accidents that may involve a customer or a member of the public. Think of pedestrian crossings, and children on bicycles swerving in and out of parking areas.


If you store goods to be delivered in a warehouse, you will need comprehensive cover here too. Theft, fire or damage can potentially ruin a business if it is not insured properly.

Whether you own a small or large logistics enterprise, you cannot operate without adequate insurance cover. When insuring with a specific company or broker, make sure that they understand both your business model and the requirements needed to ensure proper coverage in all aspects of your business. Knowing you are properly covered is priceless.