Carriers liability insurance
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Carriers Liability Insurance NZ
Carrier's liability insurance provides coverage for businesses that transport goods for other people or companies, covering legal liability and defense costs for transporting or storing goods. Essentially, if something happens to those goods while they’re in your possession - like if they get damaged or stolen - this insurance can help cover the costs, manage risks and costs arising from damage to third party property, and provide cover for loss or damage to goods during transit.
Why is carriers liability insurance important?
Imagine running a business where you’re responsible for transporting valuable goods. Accidents can happen, from a simple coffee spill on a package to a major traffic incident damaging an entire shipment. Understanding the risks involved, such as damage to goods during transit, cyber-related events, and communicable diseases, is crucial for any carrier. Carriers liability insurance ensures that when these accidents happen, your business isn’t left carrying the full financial burden. It gives you peace of mind, knowing that you’re protected from potential financial losses.
Carrier liability insurance not only covers the financial aspect but also the legal liability, including defense costs and expenses when goods are transported or stored. This coverage is essential in managing the legal aspects and responsibilities that come with transporting goods, offering protection against various scenarios and conditions related to legal liability under this insurance.
It’s crucial to have carriers liability cover if your business:
- Transports goods for others
- Handles fragile or valuable items
- Operates across multiple locations
- Has a fleet of transportation vehicles
What does carriers liability insurance cover?
Damages or Loss During Transit
The primary goal of carrier's liability insurance is to cover goods carried that get damaged or lost while they are being transported. This could be due to accidents, mishandling, or unforeseen events. For instance, if you’re transporting a shipment of electronics and they get damaged due to an accident, this insurance can help cover the costs. Additionally, when businesses carry cargo, they assume legal liability and potential costs for transporting goods, including scenarios where cargo is damaged or lost. This insurance is crucial in covering the responsibilities and potential liabilities involved in the carriage of goods, ensuring that businesses are protected against the financial implications of such events.
Theft of Goods
If the items you are transporting are stolen, carriers liability insurance can step in to cover the loss. Whether it's a small package from a van or a significant portion of goods from a warehouse awaiting transportation, you're protected against theft.
Legal Costs Associated with Claims
Sometimes, disputes can arise over the damage or loss of goods. If a client or third party decides to take legal action against you, carriers liability insurance can also help cover the legal costs. This can include attorney fees, court costs, and any settlements or judgments.
How much does carriers liability insurance cost in NZ?
Carriers liability premiums are calculated on several different factors including:
- Type of coverage
- Journeys undertaken
- Sums insured
- Claims history
Carriers liability insurance can range in cost from $40 – $80 a month for small business.
Who needs carriers liability insurance?
Any business or individual involved in the transportation of goods for others should seriously consider carriers liability insurance. This includes:
- Trucking companies.
- Couriers.
- Removalists.
- Businesses offering delivery services.
- Logistics and freight forwarders.
While it’s not a legal requirement for all transporters, some contracts or clients might require you to have it. Plus, it’s a wise business decision to protect yourself from risks you are liable for. You should read the Contract and Commercial Law Act 2017 to understand what you are liable for.
Typically, carriers liability insurance covers domestic transits. For international transits, you might need additional coverage called Marine Cargo Insurance.
How do I get proof of carriers liability insurance?
You can usually get proof you are insured on the same day when you purchase carriers liability insurance through Gerrards.
Acquiring carriers liability insurance from traditional insurance brokers may require a few weeks, a delay that could create problems for policyholders who need instant insurance proof of carriers liability insurance for a contract.
To obtain insurance coverage promptly, contact us. We may require you to provide some fundamental details about your operations, such as:
The type of activity
Values
Dates
Claims history
Risk management strategies
Once you accept a quote we will issue you with a certificate of carriers liability insurance.
What does carriers liability insurance not cover?
Goods in open transport
Some policies exclude goods transported without proper protection from weather or external factors.
Illegal activities
Any transport related to illegal activities is not covered.
Inherent vice
This refers to the natural decay or destruction of certain goods, like food rotting if not refrigerated.
Intentional damage
If you or one of your employees purposefully damages the goods, the insurance won’t cover it.
Other common questions about carriers liability insurance NZ
Yes! It’s essential to discuss with your broker about adjusting your coverage to suit the value and type of goods you transport. This flexibility allows you to provide cover for various liabilities and risks associated with carrying cargo, including damage to goods, legal liabilities, and additional expenses incurred during transit.
Start by documenting the damage with photos, gather relevant paperwork, then contact us or your broker for assistance. Do not that to claim for additional costs such as subsequent clean up costs and cargo related costs will also require documentation to be claimed for.
Your carriers liability insurance can cover the damaged goods. For the truck damages, you’d look to your vehicle or commercial vehicle cover.
Generally, yes! If goods are stolen while in your care, carriers liability insurance can help cover the costs. Specifics can vary, so check your policy for exclusions or ask your brokers.
Carriers liability insurance focuses on the transporter’s responsibility for other people’s goods. Goods in transit insurance typically covers the goods themselves, regardless of who is transporting them.
