Logistics Firms Need to Reread Those Insurances Policies Whilst in Lockdown

UK – With the country on its second lockdown the fact that many business premises are closed, in part or altogether, presents a new set of problems with regard to aspects which often are ignored - until the worst happens. The obvious case which comes to mind is that of insurance.

In the sphere of logistics the problems are particularly complex, a busy operation is likely to contain elements of road haulage, goods handling, freight forwarding, storage and, ever increasingly, order fulfilment, particularly with the recent boost in online operations.

Any one part of the operators portfolio might be affected by the current pandemic which has seen businesses shutting down a part, or all of the company whilst in a lockdown situation, with the effect, and additional risk, unique to each situation.

Some goods coverage policies for example require they move within thirty days from the time they arrive at a warehouse. Even if the logistics operator is up and running, the fact the customer is closed is no excuse for exceeding the agreed storage period.

As far as premises are concerned most insurance policies allow for a period of non-occupancy, but this comes with certain conditions and it is important to comply with these for the cover to remain valid. If business premises are likely to be unoccupied for longer than the period allowed, it is imperative to contact the insurers with full details of your risk assessment and security plans.

The insurer will require you to let them know how the property has been secured and what has been undertaken to manage the utilities. Insurers expect there to be regular inspections of the property including the running of taps and flushing of toilets, which is especially important during the winter.

Peter Lole Insurance specialises in all the aspects of logistics trade insurances and Tracey Meaney, Director, explained:

“As we have now entered a second lockdown in England, it is important that businesses not operating from their usual place of work consider the appropriate conditions of their business insurance policies.

“Some may have not fully reopened after the first lockdown and others may be asking staff to return to working from home. Whatever your situation, it is important to check that you are complying with your insurance policies conditions.”

Photo: If it’s going to flood make sure those goods are kept off the floor!