New Liability Risks for Third Party Logistic Providers

From directly managing cargo transportation to advising companies that offer diverse shipping and freight services, Third Party Logistic Providers (3PLs) are an integral part of the global supply chain.

While these companies have always faced unique liability risks, the rapid emergence of electronic and internet-based tools and services has increased exposure to claims. That makes it essential that modern cargo liability programs include coverage for secure, reliable online services and transactions.

How the Internet Has Changed Service Expectations

Customers of 3PLs increasingly expect services to include easy, secure access to interactive website portals in order to manage their orders, including items such as:

  • Tracking shipments
  • Choosing a freight carrier
  • Giving shipment instructions
  • Checking inventories

Failure to maintain reliable, trouble-free access to contracted interface options exposes 3PLs to potentially costly service claims, even if a an internet or extranet service provider is ultimately responsible. More traditional 3PL service providers that only maintain a static website also face increasing liability as documentation, business correspondence and transactions continue to move online.

Finding Comprehensive Coverage

While digital and network tools are dramatically streamlining the transportation industry, they may also leave firms open to cyber threats, and often eliminate traditional oversight measures. Cargo liability programs that specialize in 3PL coverage can help these companies to minimize losses incurred in a rapidly evolving digital marketplace.