When owning a business of any kind, it’s never a bad idea to acquire an insurance policy that is designed to support you if a lawsuit is filed against you. For most business owners, liability insurance will sufficiently protect against situations of property damage or bodily harm, but if you own a business that specializes in transport of goods, this type of insurance won’t be enough to protect you. Most wrongful acts that your clients are likely to sue you for will be a result of failed delivery, which is not covered under liability insurance. You’ll need an errors and omissions policy, also known as E&O. E&O logistics professionals strive to provide protection for you and your transportation business in ways that liability coverage cannot.
If your client has an issue with the way their delivery arrived, or if it was late, it could slow down operation of that client’s business. Because the problem was with their delivery, they will hold the transportation service responsible, and they will likely seek damages to cover any losses incurred during the delay. If you have an E&O policy, you will only have to pay the deductible out of pocket before your policy covers the rest.
The process of paying out damages will go much smoother with the help of E&O logistics professionals, and you stand a better chance of retaining the unhappy client.