Whether on a highway, an ocean freight or a customer’s doorstep, one key advantage of working with a Cleveland 3PL (third-party logistics company) is reducing the risk of liability – on several fronts.

How? A dependable Cleveland 3PL streamlines supply chains by reducing bottlenecks, constantly updating intermodal deliveries and preparing for exigencies with solid contingency plans. In taking on these responsibilities, our insurance assumes coverage for some of the risks our clients would otherwise have to burden alone.

That said, shippers/manufacturers are urged to carefully review their own liability insurance plans with a qualified agent to ensure their coverage is sufficient, but not excessive. Cargo insurance (land, marine, general) is not required of shippers, but it’s something for which many opt.

Although we can’t advise you on insurance, here’s what we can say:

At On Time Delivery and Warehouse, our committed Cleveland 3PL team strives daily to always provide the very best logistics services to our clients while also keeping our rates AND terms-of-service, fair, unambiguous and transparent.

Specific Ways You’re Less Vulnerable With a 3PL

Reduction of insurance premiums alone may be worth it considering when weighing in-house v. outsource logistics options. But while reduction of premiums can be clearly measured, sometimes the bigger cost-saver is in what we help prevent.

Consider what these potential impacts might do for your firm:

• Truck Accidents. By carving out the fastest, safest routes to help truckers avoid delays in traffic jams and understaffed loading docks, we allow drivers to feel far less rushed, tired and stressed.  Given that speed, fatigue and aggressive driving are all high on the list of catalysts for large truck accidents, this is important. The Federal Motor Carrier Safety Administration (FMCSA) reported at least 4,657 trucks were involved in fatal crashes in a single recent year. Another 107,000 large trucks were involved in serious injury crashes. We prioritize not just efficiency but safety – vetting and monitoring each driver (all Haz-mat certified and TSA accredited) while also maintaining our fleet in top condition. 
• Workers’ Compensation/Premises Liability. Warehouse worker injury and premises liability claims will no longer be a concern if you outsource to a trusted logistics partner who can handle it all for you. Our Northeast Ohio warehousing services are always competitively-priced.
• Commercial liability insurance. Under certain provisions of federal law, your logistics partner, in its capacity as a federally-registered motor carrier – assumes some degree of liability. Due to the substantial damage large trucks can cause in a collision, any truck over 10,000 pounds is subject to the minimum mandatory insurance coverage $750,000. Rates rise from there, but most motor carriers maintain liability rates in excess of this.

All this doesn’t necessarily mean shipping companies and manufacturers can’t presume they’re off-the-hook. There are certain losses that a 3PL contract doesn’t cover (natural disasters, etc.). The same is true if there is a crash. The point is shippers can’t presume they are entirely off-the-hook, as they might end up partially or even personally responsible.

Many 3PL Clients Retain Cargo Insurance Coverage

While the terms of each contract may vary, generally your Cleveland 3PL will assume responsibility for the safe transport of your goods from the moment oversight is accepted. In turn, certain financial burdens/risks are shifted from you to us.

Some examples of losses that 3PLs typically rectify:

• Goods arrive damaged (often due to incorrect handling or improper loading; typically excludes natural disasters);
• Improperly-labeled packages;
• Wrong item picked/shipped;
• Item does not arrive on time because of logistics error (particularly if spoilage occurs).

At On Time Delivery & Warehouse, we can afford to take on these risks because the reality is, for us, they’re rare if ever. We’re committed to the kind of excellence at every touch point of the supply chain that rarely necessitates a claim for losses.

If you have questions about Cleveland trucking company services, contact On Time Delivery & Warehouse by calling (440) 826-4630 or sending us an email.

Additional Resources:

Cargo Insurance: Protecting against risk, Aug. 1, 2019, Logistics Management

Highway Bottleneck Blues: 3PL Cleveland Trucking Solutions to Cut Costs, May 25, 2019, Cleveland 3PL and Trucking Firm