Third-Party Logistics Pose RM Challenges

Today’s third-party logistics providers–also known as 3PLs–are providing a broader range of more sophisticated services, in more places around the world, than ever before, and they are encountering more exposures as a result.

As some discover too late, some of these exposures are addressed only tangentially, if at all, by conventional “business as usual” insurance coverages. In addition, when faced with new exposures, it’s not uncommon for 3PLs to buy different policies from different insurers. This patchwork approach may provide uneven coverage at best, and at worst, could result in costly coverage gaps.