The traditional method by which a third-party logistics provider (3PL) company operates their businesses has significantly changed and will continue to change as a result of several notable, high-profile, judicial decisions. Recent federal and state court decisions have held that 3PL companies and shippers may be liable for the unfortunate and oftentimes negligent actions of underlying service providers that transport freight.
Any company, that is not aware of these material adverse developments and, accordingly, fails to adapt will not be able to adequately protect itself or its customers.
Given the sheer number of loads a 3PL company covers on a daily basis with numerous service providers, and because of the amount of miles traveled over the road by such providers, Apex is aware that accidents, property damage and freight loss will inevitably occur. That’s why Apex provides itself and its customers with added protection through our Apex Umbrella. The Apex Umbrella provides contingent auto, general liability and excess coverage of up to $10MM. In addition, our Apex Umbrella provides contingent cargo coverage of $250K per load as well as errors and omissions coverage of up to $6MM. We also carry “shipper’s interest” coverage that pays “first dollar” up to $1MM per incident.
Shippers utilizing the services of traditional 3PL companies that have not transformed their approach to such evolving industry risks are assuming unnecessary balance sheet risk.
If you would like a better understanding of the Apex Umbrella and how it can work for you, please contact us.