A start-up transport enterprise is one of the most challenging ventures anyone can take on. No one tells you what to expect. You only run into stuff as your business grows, learning to solve problems as they arise. Rest assured that some of the events will catch you flatfooted, but that should not force you into closing shop. Be brave and handle your first customer backlash with professionalism. Take risks and be adventurous as you manage the first system failure. Indeed, it helps to have insurance policies that safeguard you in this line of trade. Here are some of the must-have insurance policies for a start-up transport firm.
Professional Indemnity Policy
When you venture into transport, you certainly need a professional indemnity policy. Part of your work will involve advising clients on the best trucks to use and transportation protocols. As a professional in the field, you have adequate knowledge of the sector and are always ready to address all manner of questions that clients come to you with. However, your knowledge base does not eliminate the possibility of human error. A client relying on your professional advice can sue you if things do not turn out as anticipated. For example, a client can sue you for bad cargo upon delivery, especially if they relied on your advice to pack and transport the cargo in a certain manner. Professional indemnity policies cover liabilities arising from such scenarios.
Business Interruption Policy
It is easy to see how insurance policies help your business get back on its feet when disaster strikes. For example, your insurer will compensate you for fire damage if you have a comprehensive policy cover with them. This should mitigate the losses for your business. However, few enterprises anticipate scenarios where they have to be out of business for weeks or months. Take a case where your start-up's transportation model has never been in the market. If you are bringing in multi-trailer trucks for the first time, you could face regulatory issues from the government. The authorities can halt your operations for a while until there is a way forward regarding compliance, taxes, safety and much more. A business interruption policy protects against financial losses should you need to shut down your business for a specified period.
Machinery Insurance Policy
Your transport company will incur losses when equipment and machines break down. A machine insurance policy will save you from delayed repurchases in case a machine breaks down in the course of businesses. Some policies offer additional benefits where the insurer arranges for alternative equipment as you repair the trucks or vehicles that broke down.
Contact a company that offers trade insurance services to learn more.