3PL Warehouse Insurance Broker Reveals Hidden Risk Secrets
The Hidden Risks in 3PL Warehousing
One of the primary risks in 3PL warehousing is liability for goods stored on behalf of clients. While many operators assume standard property insurance covers these items, the reality is more nuanced. Warehouse legal liability insurance specifically addresses this gap, protecting against claims for damaged or lost goods due to negligence1.
Another often-overlooked risk is cyber liability. With the rise of digital inventory systems, 3PL warehouses are increasingly targets for cyberattacks. A breach can lead to significant financial losses and reputational damage. Cyber liability insurance can provide the necessary protection against these threats2.