Redditch, UK: Rising supply chain costs risk logistics providers under-insuring inventory, warns Craig Attwell, managing director, Rack Collapse Prevention.
“As warehouses and storage facilities get bigger and busier, it’s important for product manufacturers who use third-party storage and logistics providers, to ask the question ‘is my product adequately insured’ as it’s the manufacturer’s responsibility to insure goods for their true value,” Attwell says.
“Unless manufacturers have arranged specific terms with their storage provider, in the event of significant product loss they will only get the insurance industry standard payment under the Road Haulage Association Conditions of Storage which specify an insurance recovery value of £100 per ton/pallet.
The risk from being underinsured is significant with so many products more than this insurance figure potentially costing in the thousands of pounds per ton/pallet, he says.
“It’s so important to make it routine to review your insurance coverage, the same way you would check to see that the facility your products are to be stored in had robust preventative safety measures in place, as accidents will and do happen,” Attwell says.
