Large Logistics Company Insurance: Enterprise Coverage

Introduction

Large logistics companies keep the UK economy moving. Whether you operate national HGV fleets, multi-site warehousing, third-party logistics (3PL), fulfilment, temperature-controlled distribution, or time-critical courier networks, your risk profile is very different from a small haulier.

Enterprise logistics businesses face high-frequency motor claims, complex contractual liability, cargo exposure across multiple hands, reliance on technology, and strict compliance duties. One uninsured incident—an RTI collision, warehouse fire, ransomware attack, or a major cargo loss—can create seven-figure costs and long-term reputational damage.

This guide explains what “enterprise coverage” looks like for large logistics firms, how policies fit together, where gaps commonly appear, and what underwriters will want to see when you go to market.

What makes large logistics risks different?

Large logistics operations tend to combine multiple risk types under one roof:

• High asset values: HGVs, trailers, MHE (forklifts), racking, automation, WMS/ERP systems.

• High throughput: more vehicle miles, more loading events, more opportunities for loss.

• Contractual complexity: SLAs, penalty clauses, indemnities, and customer-specific requirements.

• Multi-site exposure: depots, cross-docks, hubs, bonded warehouses, and third-party sites.

• People risk at scale: drivers, warehouse teams, agency labour, night shifts.

• Technology dependence: route planning, telematics, handheld scanners, EDI, customer portals.

• Regulatory scrutiny: HSE, DVSA, tachograph rules, operator licensing, GDPR.

Because of this, enterprise insurance is rarely a single policy. It’s a structured programme designed to protect the balance sheet, satisfy customer contracts, and keep operations running.

Core insurance policies for enterprise logistics companies

1) Fleet motor insurance (HGV, vans, cars, plant)

For most large logistics firms, motor is the highest-frequency line.

Typical cover options include:

• Comprehensive cover for owned vehicles

• Third party, fire and theft (less common for enterprise fleets)

• Any driver / named driver / driver pools depending on risk controls

• Trailer cover and attached/unattached trailer liability

• Courtesy vehicles and hire vehicles

• Windscreen and glass

• Breakdown and recovery (often operationally essential)

Key extensions and considerations:

• Goods in Transit is not the same as motor cover—don’t assume cargo is insured.

• Foreign use for EU/ROI operations and cabotage considerations.

• Plant and MHE: forklifts may need separate plant cover if used off-road.

• Claims management: large fleets benefit from structured FNOL, camera/telematics evidence, and repair networks.

Underwriters will look closely at:

• Driver vetting, licence checks, medical standards

• Telematics, dashcams, and driver coaching

• Maintenance schedules, defect reporting, and PMI records

• Route planning, fatigue management, and night driving controls

• Claims frequency and large-loss history

2) Employers’ liability (EL)

In the UK, EL is typically compulsory if you employ staff.

For logistics, EL is critical because of:

• Manual handling injuries

• Forklift and yard incidents

• Slips, trips, and falls

• Racking collapse and falling goods

• Agency labour and labour-only subcontractors

Enterprise EL programmes should consider:

• Higher limits where contracts require it

• Territorial limits if staff travel or work abroad

• Contractors and labour supply exposures

3) Public and products liability (PL)

Public liability protects against third-party injury or property damage arising from your operations.

Common logistics PL scenarios:

• Damage to customer premises during delivery

• Injury to visitors at depots

• Damage caused by loading/unloading operations

Products liability may be relevant if you:

• Repack, relabel, assemble, or kitting items

• Provide value-added services that alter goods

4) Goods in Transit (GIT) / cargo insurance

Cargo exposure is often the biggest “silent gap” in logistics.

Goods in Transit can cover:

• Loss or damage to goods while being carried

• Theft from vehicles, depots, or during stops

• Damage during loading/unloading

• Temperature excursions (where applicable)

Key points for enterprise cover:

• Basis of cover: “all risks” vs named perils.

• Limits: per vehicle, per conveyance, per location, and in the aggregate.

• High-value goods: electronics, alcohol, pharmaceuticals, luxury retail.

• Security conditions: immobilisers, tracker requirements, secure parking, two-person crews.

• Contractual liability vs legal liability: many customers expect you to insure beyond standard carrier liability.

If you operate internationally, consider:

• Marine cargo policies for imports/exports

• Incoterms responsibilities

• Customs and bonded storage exposures

5) Property insurance (buildings, contents, stock, MHE)

Large logistics sites can be high-severity risks due to:

• Large floorplates and high racking

• Fire load from packaging and stored goods

• Lithium battery risks (e-bikes, devices, returns)

• Automation and conveyor systems

Property cover typically includes:

• Buildings (owned) or tenants improvements

• Contents: racking, office equipment, IT hardware

• Plant and machinery / MHE

• Tools and portable equipment

Underwriters will want:

• Fire risk assessments, alarm and sprinkler details

• Compartmentation, smoke ventilation

• Hot works controls

• Electrical inspection/testing records

• Security: access control, CCTV, intruder alarms

6) Business interruption (BI)

Business interruption is where enterprise programmes protect cashflow.

BI can cover:

• Loss of gross profit following insured property damage

• Increased cost of working (ICOW) to keep operating

For logistics, BI planning should consider:

• Indemnity period: 12 months is often too short for major warehouse rebuilds—24–36 months may be more realistic.

• Alternative site arrangements: temporary warehousing, cross-dock options.

• Supplier/customer dependency: a single major customer or hub failure can be catastrophic.

7) Cyber insurance

Logistics is highly digitised and increasingly targeted.

Cyber cover can help with:

• Ransomware response and business interruption

• Data breach costs and GDPR-related liabilities

• Incident response, forensics, and legal support

• Third-party claims and regulatory investigations

Cyber risk is not just “IT”. Consider operational technology:

• Warehouse automation systems

• Scanners and handheld devices

• Telematics and route optimisation

• Customer portals and EDI integrations

8) Management liability (D&O) and corporate covers

Large firms often need:

• Directors’ and Officers’ (D&O)

• Corporate legal expenses

• Crime / fidelity (employee dishonesty)

• Pension trustee liability (where applicable)

These protect leadership and the business from allegations of mismanagement, regulatory issues, or financial loss.

9) Professional indemnity (PI) for logistics and 3PL

If you provide logistics consultancy, planning, customs advice, or supply chain management services, PI may be essential.

Examples:

• Incorrect customs documentation advice

• Errors in inventory management leading to customer losses

• Failure to meet service levels due to planning mistakes

Enterprise programme design: how large logistics companies structure cover

Large logistics firms often use a layered approach:

• Primary layer: core policy with a standard limit

• Excess layers: additional limits above the primary

• Captive or self-insured retention: retaining predictable losses

This can be applied to liability, motor, and sometimes property.

The goal is to balance:

• Premium efficiency

• Claims volatility

• Contractual requirements

• Balance-sheet protection

A broker can help map exposures across the business and design a programme that avoids overlaps and gaps.

Common coverage gaps (and how to avoid them)

Contractual liability mismatches

Customer contracts may require higher limits, specific wording, or cover for consequential loss. Standard policies may not match those obligations.

Fix: review SLAs and contracts before renewal and align policy wordings and limits.

Incorrect GIT limits

A single vehicle may carry goods worth far more than the “per vehicle” limit.

Fix: model worst-case loads, peak season volumes, and customer-specific high values.

Uninsured subcontractor exposure

Using owner-drivers or subcontractors can create gaps if their insurance is inadequate.

Fix: implement a subcontractor insurance schedule, verification process, and contractual controls.

Warehouse automation and equipment

Conveyors, robotics, and specialist kit may be underinsured or excluded.

Fix: maintain an up-to-date asset register and ensure sums insured reflect replacement costs.

Cyber BI not aligned to operational reality

Some cyber policies have waiting periods or sub-limits that don’t match the cost of downtime.

Fix: stress-test scenarios (e.g., WMS down for 5 days) and align cover accordingly.

What underwriters want to see from enterprise logistics businesses

To access better terms, insurers look for evidence of strong risk management.

Fleet and driver controls

• Driver recruitment standards and training

• Licence checks and ongoing monitoring

• Telematics, dashcams, and incident review

• Fatigue management and scheduling controls

Site safety and HSE compliance

• Documented risk assessments

• Manual handling training

• Forklift training and segregation of pedestrians/vehicles

• Near-miss reporting and corrective actions

Security and theft prevention

• Secure yards, gates, and lighting

• CCTV coverage and retention periods

• Approved parking policies for drivers

• High-value load protocols n

Business continuity planning

• Alternative sites and third-party warehousing options

• IT disaster recovery and backups

• Supplier and customer dependency mapping

How to reduce premiums without stripping cover

Enterprise buyers often focus on premium, but the bigger win is reducing total cost of risk.

Practical levers include:

• Higher deductibles where losses are predictable

• Claims process improvements and faster FNOL

• Repair network agreements

• Driver coaching programmes

• Sprinkler upgrades and fire compartmentation

• Cyber controls: MFA, backups, patching, EDR

The aim is to present a strong risk story to the market.

Choosing limits: what’s “enough” for a large logistics company?

There’s no one-size-fits-all, but consider:

• Largest single cargo load value

• Maximum number of vehicles in one incident (pile-up)

• Largest warehouse replacement cost and rebuild timeline

• Contractual requirements from top customers

• Worst-case cyber downtime and ransom scenarios

A broker can help model realistic worst-case losses and recommend limits that make sense.

Claims: what good looks like in enterprise logistics

When incidents happen, speed and evidence matter.

Best practice includes:

• Clear incident reporting and escalation paths

• Telematics and camera footage retention

• Temperature logs for cold chain

• Warehouse CCTV and access logs

• Documented maintenance and inspection records

Strong claims data also helps at renewal by demonstrating control and learning.

Why work with a specialist commercial broker?

Enterprise logistics insurance is technical. A specialist broker can:

• Translate contracts into insurance requirements

• Negotiate bespoke wordings

• Structure layered programmes

• Coordinate multiple insurers and claims teams

• Help you present risk improvements to underwriters

For large firms, the broker’s role is as much about programme design and governance as it is about price.

FAQs: Large Logistics Company Insurance

What insurance is legally required for a logistics company in the UK?

Most logistics firms need employers’ liability (if they employ staff) and motor insurance for vehicles used on the road. Other covers like public liability, goods in transit, property, and cyber are not always legally required but are often essential.

Is goods in transit insurance the same as courier insurance?

Not exactly. Courier insurance can be a package that includes motor, liability, and sometimes goods in transit. Enterprise logistics firms usually need a dedicated GIT/cargo policy with tailored limits and conditions.

Do we need cover for subcontractors and owner-drivers?

If you use subcontractors, you should have a robust process to confirm their insurance and define responsibilities in contracts. You may also need contingent liability cover depending on your arrangements.

How do insurers price fleet motor for large logistics companies?

Pricing is driven by claims history, driver profile, vehicle types, annual mileage, routes, operating hours, and risk controls like telematics and driver training.

What’s the difference between property insurance and business interruption?

Property insurance covers physical damage to buildings and contents. Business interruption covers the financial impact of downtime (loss of gross profit and extra costs) following insured damage.

Can cyber insurance cover operational downtime if our WMS is hit?

Often yes, but cover depends on the policy wording, waiting periods, and sub-limits. It’s important to align cyber BI cover to your operational realities.

How much public liability cover should a large logistics company have?

It depends on contracts, site exposure, and the size of potential third-party losses. Many enterprise contracts require higher limits than smaller businesses.

We store customer stock—does our property policy cover it?

Not automatically. Customer goods may need to be insured under a stock or bailee’s customers policy, or under a goods in transit/cargo policy with storage extensions.

What is bailee’s liability and do logistics companies need it?

Bailee’s liability relates to your legal responsibility for goods in your care, custody, or control. Many logistics firms need this concept addressed within their cargo/GIT arrangements.

Call to action

If you operate a large logistics business, your insurance should be built like your operation: structured, resilient, and designed for scale. A well-built enterprise programme can protect your fleet, people, sites, technology, and customer commitments.

If you’d like a review of your current cover, your contracts, and your risk controls, speak to a specialist commercial broker who understands enterprise logistics and can help you secure robust terms.