transit insurance programs

3 Types of Transit Insurance

Companies with global supply chains can benefit from transit insurance programs. These insurance policies cover a business’s property while it is in transit from one destination to another. There are many types of transit insurance available to companies that distribute materials. Below are just a few options.

Transportation Legal Liability

Warehouse operators, trucking companies, and others in the freight forwarding business can be legally liable for the materials that spend time in their possession. An unhappy client may sue for damages if their cargo is lost or damaged. Legal liability insurance can cover the costs associated with a lawsuit or settlement if a transportation company is found to be negligent.

Catastrophic Peril

Many transit insurance programs include coverage for natural disasters such as earthquakes, floods, hurricanes, and tornados. If cargo is destroyed by one of these events, this insurance policy may reimburse the holder for damage to both the affected vehicle and the property it is carrying.


Warehouse operators are often legally responsible for losses or damage that happen while they are storing another company’s cargo. In the event that a customer files a lawsuit, warehouse legal liability coverage will cover attorney’s fees and pay any settlements due.

Transit insurance programs can benefit any company that deals with transportation logistics on a regular basis. An experienced insurance company can help build a policy designed to mitigate risk.