Logistics Industry Solutions
iCare understands the unique risks faced by businesses in the textile industry. From machinery breakdowns to fabric spoilage, we offer comprehensive insurance solutions to protect your operations and ensure financial stability. We offer coverage for damage to your buildings, machinery, and inventory caused by fire, theft, natural disasters, and other perils. Alongside, at iCare, you receive coverage for lost profits and expenses if your business is forced to shut down due to a covered event. With product liability you will get coverage for legal costs and damages if your products cause harm to consumers. Our Errors and omissions will also offer coverage for claims of negligence against your business.
Key Risks
- Cargo damage or loss
During transportation, goods can be damaged or lost due to accidents (collisions, rollovers), weather events (floods, hailstorms), or improper handling (dropping, crushing). This can result in significant financial losses for logistics companies who may need to reimburse the value of the cargo and potentially face legal repercussions. Additionally, failing to fulfill delivery commitments can damage a company’s reputation and customer trust.
- Cargo theft
Cargo theft is a major concern throughout the supply chain, with thefts occurring on roads (during transport), at warehouses (during storage), and even on ships (maritime piracy). This can lead to lost inventory, causing delays in deliveries and impacting production schedules for manufacturers. Furthermore, logistics companies may incur financial losses to replace the stolen goods.
- Transportation delays
Delays can disrupt delivery schedules and lead to lost business and customer dissatisfaction. These delays can be caused by various factors, including. Traffic congestion, especially in urban areas during peak hours.Bad weather conditions such as heavy rain, snowstorms, or fog, which can limit visibility and road closures. Mechanical breakdowns of vehicles or equipment during transportation, causing disruptions until repairs are completed.
- Business interruption
Business interruptions can arise from various unforeseen events that can significantly disrupt logistics operations and cause substantial financial losses. These events include:Natural disasters such as earthquakes, hurricanes, or floods, which can damage infrastructure and hinder transportation routes. Cyber Attacks that can cripple computer systems, disrupting warehouse operations and shipment tracking.Fires at warehouses or storage facilities, which can damage or destroy inventory and disrupt operations.
- Liability risks
Logistics companies can be held liable for damages caused to cargo, property, or even personal injuries during transportation or storage. This could be due to several factors, including accidents caused by driver negligence or poorly maintained vehicles. Improper handling of goods during loading, unloading, or storage, leading to damage or spoilage.Failure to comply with safety regulations, resulting in injuries to workers or third parties.
Logistics insurance can help protect businesses from these risks by providing financial compensation for losses. This can help businesses to weather storms and continue operating even in the face of unexpected events.
Product
1. Fire – Loss of Profit
Fire loss profit insurance, also known as business interruption insurance, is a type of insurance specifically designed for businesses in the logistics industry. It protects them from financial losses arising from a fire-related interruption of their operations.
What does it cover?
- Loss of gross profit due to business interruption caused by a fire
- Increased costs incurred to minimise the interruption, such as expediting repairs or renting temporary facilities
What it doesn’t cover?
- Loss of property or inventory due to fire (covered by standard fire insurance)
- Business interruption caused by reasons other than fire (e.g., natural disasters, power outages)
Additional coverage available for an extra premium:
- Increased operating expenses due to a fire (e.g., overtime pay for employees)
- Expedited shipping costs to meet customer demand
2. Directors & Officers Liability
Directors & Officers (D&O) liability insurance is a type of insurance designed to protect directors and officers of a company from personal financial losses if they are sued as a result of their decisions or actions taken while serving in their official capacities.
What does it cover?
- Legal defence costs incurred by directors and officers in lawsuits
- Settlements or judgments awarded against directors and officers in lawsuits
What it doesn’t cover?
- Fraud or criminal offences committed by directors or officers
- Fines and penalties imposed by regulatory bodies
Additional coverage available for an extra premium:
- Coverage for claims brought by the company itself against directors and officers (Side A coverage)
- Coverage for losses incurred by directors and officers even if the company is unable to indemnify them (Side B coverage)
3. Public Liability Insurance
Public liability insurance, also known as commercial general liability (CGL) insurance, is a type of insurance that protects businesses from financial losses arising from third-party bodily injury or property damage caused by the business’s operations.
What does it cover?
- Legal defence costs associated with lawsuits alleging third-party bodily injury or property damage
- Settlements or judgments awarded to third parties in such lawsuits
What it doesn’t cover?
- Intentional acts or omissions by the business
- Pollution
- Product liability (damage caused by the business’s products)
Additional coverage available for an extra premium:
- Products liability insurance
- Pollution liability insurance
4. Machinery Breakdown Policy
A machinery breakdown policy, also known as boiler and machinery insurance, is a type of insurance specifically designed for businesses in the logistics industry. It protects them from financial losses arising from unexpected breakdowns of essential machinery and equipment.
What it covers?
Repair or replacement costs of machinery damaged due to a covered breakdown
- Expedited freight charges and import duties for replacement parts
- Loss of profits caused by business interruption due to a machinery breakdown (with additional coverage)
What it doesn’t cover?
- Gradual wear and tear of machinery
- Lack of proper maintenance
- Operator error
5. Carrier Legal Liability
What is it?
Career legal liability insurance is a specific type of insurance designed to protect professionals from financial losses arising from legal claims related to errors or omissions in their work.
What does it cover?
- Legal defence costs associated with lawsuits alleging professional negligence
- Settlements or judgments awarded to plaintiffs in such lawsuits
What it doesn’t cover?
- Intentional misconduct by the professional
- Claims arising from a lack of qualifications or experience
- Disciplinary actions by regulatory bodies
Additional coverage available for an extra premium:
- Coverage for punitive damages (depending on the jurisdiction)
- Loss of income due to suspension from practice
6. Industry All Risk Policy
An Industry All Risk Policy is a comprehensive insurance policy designed for businesses in the logistics industry. It provides coverage for a wide range of risks associated with the transportation, storage, and handling of goods.
What does it cover?
- Physical loss or damage to cargo caused by fire, theft, weather events, collision, or other perils
- Legal liability for damage to cargo while in the insured’s care, custody, or control
- Business interruption losses resulting from a covered cause of loss
What it doesn’t cover?
- Gradual wear and tear of cargo
- Losses excluded by specific policy terms (e.g., war, terrorism)
- Spoilage of perishable goods due to inherent vice or temperature changes
Additional coverage available for an extra premium:
- Coverage for specific perils excluded from the standard policy
- Loss of or damage to the insured’s own property (buildings, equipment)
- Spoilage of temperature-controlled goods
7. Group Health Insurance
What is it?
Group health insurance is a type of health insurance plan offered by employers to their employees. It’s a common benefit in the logistics industry, which often employs a large workforce.
What does it cover?
- Hospitalisation costs
- Doctor visits
- Prescriptions
- Preventive care (depending on the plan)
What it doesn’t cover?
- Dental and vision care (usually offered as separate plans)
- Long-term care
Additional coverage available for an extra premium:
- Dental and vision coverage
- Life insurance
- Accidental death and dismemberment insurance
8. Group Personal Accident Insurance
What is it?
Group personal accident insurance is a type of insurance specifically designed to provide financial protection to a group of employees, in this case, employees in the logistics industry. It offers coverage in case of accidental death or disability.
What does it cover?
- Accidental death benefit: A lump sum payout to the beneficiary in case of the insured employee’s accidental death.
- Permanent disability benefits: Financial compensation in case an accident leaves the insured employee permanently disabled.
- Temporary disability benefits: Financial assistance in case an accident prevents the insured employee from working for a temporary period. (Depending on the policy)
What it doesn’t cover?
- Non-accidental injuries or illnesses
- Pre-existing medical conditions
- Self-inflicted injuries
Additional coverage available for an extra premium:
- Medical expenses incurred due to the accident
- Hospitalisation cash benefit for daily hospital stays
9. Group Term Life Insurance
Group term life insurance is a type of life insurance offered by employers to their employees as a group benefit. It’s particularly common in the logistics industry, where it can provide financial security to employees’ families.
What does it cover?
- A death benefit paid to the beneficiary named by the insured employee in case of their death. The benefit amount is typically determined by a formula based on salary or a flat amount.
What it doesn’t cover?
- Death due to suicide (may have exclusions or limitations)
- Pre-existing conditions (may have a waiting period)
- The policy terminates when employment ends (conversion to individual policy may be possible)
Additional coverage available for an extra premium:
- Increased death benefit amount
- Accidental death and dismemberment (AD&D) rider providing additional payout for specific accidental injuries
10. Crime Insurance
Crime insurance protects logistics companies from financial losses arising from criminal activities. It’s crucial in this industry, as logistics businesses handle valuable cargo and cash throughout their operations.
What does it cover?
- Employee theft of money, securities, or merchandise
- Forgery of checks or other negotiable instruments
- Robbery or burglary of money and securities on the insured’s premises
- Theft of cargo while in transit (depending on the policy)
What it doesn’t cover?
- Mysterious disappearance of property (unless accompanied by evidence of forcible entry)
- Computer fraud (may be covered under a separate cyber insurance policy)
- Losses due to negligence by the insured
Additional coverage available for an extra premium
- Increased coverage for money and securities
- Coverage for computer fraud
- Extended coverage for cargo theft
11. Marine Cum Erection Insurance
What it is?
Marine Cum Erection (MCE) insurance is a comprehensive insurance policy designed specifically for construction projects. It protects against physical loss or damage to insured property from the moment it leaves the supplier’s warehouse until it’s erected, tested, and commissioned at the project site.
What it covers?
- Loss or damage to insured machinery, equipment, and materials during transportation (marine insurance)
- Loss or damage during storage at the construction site
- Loss or damage during erection, testing, and commissioning
What it doesn’t cover?
- Gradual wear and tear
- Defects in materials or workmanship
- Losses due to contractual liabilities
Additional coverage available for an extra premium:
- Increased costs due to expediting repairs or replacing damaged items
- Civil engineering works and surrounding property
Summary – iCare secures your logistics business by shielding it from legal, technical, financial & similar setbacks. We understand textile industry woes and offer insurance for machinery breakdowns, fabric spoilage, and more, even covering lost profits if a fire halts operations. Beyond property damage, iCare protects your people with health and accident insurance plans. We also offer crime insurance, as your valuable cargo is a target for theft.
