Good business relationships are built on the belief that all parties to a contract should benefit from a transaction. Unfortunately, unexpected problems have the power to break even the strongest partnerships. When troubles arise, Bailee liability insurance protects the goodwill between companies by assuring that all parties to a contract are shielded from losses that may occur during contract fulfillment.
Protect Yourself by Knowing Your Liability
As a shipper you are often responsible for the full value of the cargo entrusted to you. Unless a contract stipulates the extent of your liability, you, as the bailee, are required to carry insurance to cover the cost of lost cargo. Not all bailee liability insurance contracts are equal, however. Injury to your customer’s business as a result of goods that are lost or damaged during transport can amount to more than the value of the cargo itself, and cleanup and legal defense fees can add significantly to your costs in the event of a catastrophe that occurs while you are in possession of your customer’s property.
Protect Your Customer
Should things go wrong during shipping or storage, there is more at stake than your own liability. The relationship you have forged with you customer may be damaged beyond repair if their loss is significant. An insurance policy that quickly compensates your customer’s loss is paramount to salvaging the trust they place in you to fulfill contracts in the future.
Successful companies build and maintain lasting relationships with their customers. A bailee liability insurance contract that adequately protects your customer’s interests and your own is the best way to ensure an unforeseen loss does not sink a partnership.