Uncover Hidden Risks in 3PL Insurance Reveals Shock Results
Real-World Examples and Statistics
Consider the case of a mid-sized 3PL company that faced a $500,000 lawsuit due to a warehouse fire, only to find that their insurance policy covered just half of the damages. Such scenarios are not uncommon, as many businesses fail to fully understand the exclusions and limitations of their policies. According to the Insurance Information Institute, underinsurance is a widespread issue, with 40% of small businesses lacking adequate coverage2.
Furthermore, a study by Allianz found that business interruption and supply chain disruptions are among the top risks for logistics companies3. Despite this, many 3PL providers do not have sufficient coverage for these risks, leaving them vulnerable to significant financial losses.