Logistics is a booming industry. Currently, the industry is worth well over a trillion dollars a year and is responsible for the movement of trillions of dollars worth of goods each day. In addition, the industry employs millions of people across the globe, from entry-level positions to highly-skilled workers.
This industry has many markets, but one of the most profitable right now is last-mile delivery services.
What is Last-mile Delivery?
Last-mile delivery is getting goods from a distribution center to the final destination, which is typically a customer’s home or business. This last leg of the journey is often the most expensive and logistically difficult, so many companies turn to specialized last-mile delivery services.
The market size is estimated to be over a billion dollars, and it’s still expected to grow in the coming years. However, there are various hurdles that every last-mile delivery company has to handle if it wants to succeed. One of these hurdles is accidents and damaged products.
This is why it’s essential to have the right insurance policies for your last-mile delivery company. Here are the most important ones.
The first and most important insurance policy you need is vehicle insurance. This will protect your company if one of your vehicles is involved in an accident. It’s important to have this type of coverage because it can help cover the costs of repairs, medical bills, and even lawsuits.
There are many different types of vehicle insurance policies. For example, there are car, truck, and motorcycle policies. It’s also good to have the appropriate attorney for each type of policy. For example, if you have a motorcycle insurance policy, it’s also good to hire a motorcycle accident attorney to help you out. It’s good to do this because filing for claims and getting the money you deserve can be complicated. Having an attorney ready can ensure that you have the best chance of getting the total amount you’re owed.
General Liability Insurance
General liability insurance is defined as insurance that protects businesses from third-party claims of bodily injury, property damage, and personal injury. This type of insurance is crucial because it can help cover the costs of medical bills, repairs, and even lawsuits.
For example, let’s say one of your delivery drivers accidentally damages a customer’s property. If you have general liability insurance, your insurance company will help pay for the repairs. However, if you don’t have this type of insurance, you’ll have to pay for the repairs, which can be expensive.
Product Liability Insurance
Product liability insurance is another essential policy for your last-mile delivery company. This type of insurance protects your business from claims of injuries or damages caused by your products.
For example, an employee delivers a television to a customer and the television falls on them, injuring them. If you have product liability insurance, your insurance company will help pay for your medical bills. However, medical bills are pretty expensive, costing about $11,700 per hospital stay. So ensure that you have this insurance policy at the ready.
Workers’ Compensation Insurance
Workers’ compensation insurance is a type of insurance that covers medical expenses and lost wages for employees who are injured while working. It’s an essential insurance policy because it handles any problems your employees might have, including accidents, medical bills, and lost wages.
For example, if an employee is injured while making a delivery, your workers’ compensation insurance will help pay for their medical bills and lost wages. This is important because it can help keep your employees healthy and productive. It might also be wise to be in good relations with your local union so that you can have their support in the event of an injury.
Business Interruption Insurance
Business interruption insurance covers lost income when a business is unable to operate due to a disaster. This type of insurance is essential because it can help your business recover from a significant loss.
Business interruption insurance is crucial during the pandemic. Many businesses have been forced to close their doors due to the pandemic. If your business is one of them, business interruption insurance will help you cover your lost income and expenses. This type of insurance can help you keep your business afloat during these difficult times.
Moreover, it’s good to have it if you live in states where storms are common. For example, if a hurricane hits your state, business interruption insurance can help you cover your lost income and expenses.
These are the five most essential insurance policies for your last-mile delivery company. Make sure you have these policies in place to protect your business from any potential liabilities.