What Is Logistics Insurance?

Logistics and logistics insurance is an important part of every business. Without it, a business will lose customers, confidence, and of course, money. You may be thinking to yourself, what does logistics insurance even mean? Logistics insurance is a company’s way of protecting itself from logistics nightmares.

Lost Shipments

When a shipment gets lost, who gets blamed? Not the buyer or the seller. The company that shipped the product gets all the blame. This is why a solid logistics system is so necessary if shipping is your business. But it is Murphy’s Law; if something can go wrong, it will go wrong. There is little that can be done if it has already happened. Both buyers and sellers, especially of large orders, will have insurance to cover their losses but not the shipping company. This is why logistics insurance is so important. Even the middle man needs to know they are covered.

Damaged Property

Picture this, your most responsible truck driver is going down the highway when out of nowhere a teenager who was driving and texting skids into the side wheel. No one gets hurt, neither driver even had to stop. However, it made the truck driver swerve, and as he swerved, he heard the unpleasant sound of boxes falling in the back. Now, whose fault is that? One way or another, the damaged package needs to arrive to the buyer with a check on top. You do not want that check coming out of your pocket. When valuable property is damaged in transit, it is important to have insurance to cover that damage.

Freight and Cargo Insurance

You may have already heard of cargo insurance. It is also sometimes known as freight insurance. This is basically the same thing. Logistics insurance simply covers the entire process, from start to finish, and does not have to be box or crate specific with coverage.


Not every seller and buyer uses insurance. If something goes wrong, the shipping company is the one that gets the blame. If you handle several clients and want to lift a little bit of the stress and worry off your shoulders, logistics insurance can help with that burden. Remember, insurance is not about betting against yourself; it is about being responsible. Having logistics insurance shows your clients you will always be able to take care of them, without any kind of risks.

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