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Logistics Liability Insurance


Logistics LiabilityLogistics Liability Insurance provides indemnity for the economic loss suffered by a logistics operator in respect of its legal liability arising out of the logistics operation.

 

 

COVERAGE

 

Section 1 – Cargo Liability

  1. Physical loss of or damage to cargo
  2. Consequential loss resulting from the above
  3. Cargo’s proportion of general average or salvage contribution
  4. The costs to dispose of cargo or other property after an incident
  5. The costs for quarantine, fumigation or disinfection after an incident
 

Exclusions

  • The Insured shall not be insured any increase in its liability arising out of contract terms with its client under which its liability in relation to cargo may be increased by declaration of value by its client
  • Limited coverage applied to specified items such as gold, silver, bank notes, jewellery, works of art, antiques and live animals
  • Excludes claims where the Insured has contracted to deliver cargo at an agreed date or time    
  • The Insured shall not be insured for any increase in its liability arising out of contract terms with its client under which its limits of liability in relation to cargo is higher than that previously notified to and agreed by the Insurer

 

Section 2 – Error and Omission

  1. Incorrect statement in or omission from a bill of lading, waybill or similar contract of carriage
  2. Delivery of cargo without production of an original bill of lading, waybill or similar contract of carriage or delivery of cargo to an unauthorized or unentitled person
  3. Delay in performing the Insured’s contractual obligations
  4. Misdirection of cargo to an incorrect location
  5. Any other financial loss incurred by the Insured’s client resulting form the Insured’s failure, partly or totally, to perform its contractual obligations
  6. Fines or penalties arising out of a breach of regulations relating to import or export of cargo, pollution, immigration, security or anti-terrorism, or safety of working conditions

 

Exclusions

  • Similar to the exclusion of [Cargo Liability] as mentioned above
  • Excludes claims in respect of any liability incurred by the Insured where the Insured has made an error in computing prices or costs or has applied the incorrect rate or tariff
  • Excludes claims arising out of negligent act, errors or omissions caused intentionally or recklessly by the Insured or its employee
  • Any costs or expenses that are incurred without the prior consent of the Insurer                                     

 

Section 3 – Third Party Libility

  1. For physical loss of or damage to property of any third party including the resulting consequential loss
  2. For death, injury or illness of any third party including the resulting consequential loss
  3. To indemnify a subcontractor under a contract approved by the insurer for the subcontractor’s liability for:
    1. Physical loss of or damage to property of any third party including the resulting consequential loss
    2. Death, injury or illness of any third party including the resulting consequential loss

 

 Exclusions

  • For death, injury or illness of the Insured’s employee which the Insured incur as an employer or which would normally be insured under an Employers Liability insurance
  • Resulting from or in connection with ownership, lease or operation by the Insured or the Insured’s employee of a road vehicle which is required to be licensed
  • In respect of the Insured’s owned or leased equipment leased to someone else or with the Insured’s consent used by someone else who is not the Insured’s employee or subcontractor                                               

 

Section 4 – Costs

  1. Cost of mitigating a claim or of investigating an incident which may give rise to a claim under the insurance policy and protecting the Insured’s interests in relation to it (including survey and legal costs)
  2. Extra costs incurred solely by the failure of any party to collect or remove cargo
  3. Extra costs incurred to complete the Insured’s contractual obligation to transport the cargo to the place of delivery provided that such extra costs result solely from the failure of the Insured’s subcontractor (or person acting on its behalf) to pay its debts (or pay promptly)

 

HOW TO APPLY

To apply or learn more, please contact your insurance consultant.

 

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The above product information is for reference only. Please refer to the insurance policy for detailed terms and conditions.