Customer Storage Insurance
What is Customer Storage Insurance?
- It is an insurance product that allows the Logistics Company, as Policyholder, to offer goods-in-storage insurance to its customers and to provide them with a Certificate of Insurance stating all the insuring conditions that are applicable.
- Insurance provided is for accidental physical loss or damage to customer goods stored in the Policyholder’s warehouse. Cover is provided on an “All Risks” basis (subject to certain exclusions).
- Optional extensions of cover can also be purchased by customers, subject to an additional premium and special terms and conditions:
Out-bound transits by road and/or rail from the Policyholder’s warehouse (Distribution).
Inventory shortage whilst the goods are in store at the Policyholder’s warehouse.
Benefits for policyholders (Logistics Companies)
- Protection: the Policyholder’s liability policy will not be affected by losses that are covered by customer certificates of insurance. It is a primary cover and therefore it would also not affect the customer’s other insurances.
- Additional Service Offer: this is a unique service that the Policyholder can add to their range of customers logistics solutions and help them to differentiate from other industry competitors.
- Cover Expenses: it is common practice for Logistics Companies to charge an additional admin fee to their customers for providing this service; this would allow Logistics Companies to cover their expenses for arranging insurance and provide a source of income.
- Easy premium billing plan: The Insurance Broker Limited will collect premium on a pre-agreed monthly or quarterly basis; premium collected for each month/quarter will be in respect of customer insurance effectively in place during such month/quarter, independently by the total premium due for each certificate. Example:
Policyholder’s agreed premium billing basis = Monthly
Certificate n. XXX period of cover = 3 Months
Total premium collected by the Policyholder from the Customer for 3 Months = GBP 3,000
Total premium due by the Policyholder to CNA Hardy on 1st Month = GBP 1,000
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