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The right conditions

Susan Grove, UKWA’s specialist insurance consultant, describes how important it is to discuss any new contract wins with your insurance broker.

When taking on a new client it is clearly essential that a third party logistics service provider ensures that its business model is capable of complying with the requirements and terms laid out in the contract. But is also important to make sure your warehouse keepers’ liability insurance will insure your liability for the goods under the contract. 


Your insurance broker cannot provide legal advice – you should consult your legal advisor for this. But if your insurer will not insure your liability under the contract or only for a substantial additional premium, you must decide whether you wish to sign it.

It is also important that you discuss the new contract with your insurance broker as soon as possible. It is an unfortunate reality that the broker is often the last person to be consulted and often only has sight of the contract when the tender deadline is just a few hours away or after it has been signed.

Even if insurers agree to insure your liability under the contract they may demand an additional premium to do so which will impact on profits if this cost hasn’t been taken into account.  

But insurers will more readily accept trading conditions when they are understood by them, have been tested, were drafted by experienced lawyers, and are industry standard. The good news for UKWA members is that the UKWA conditions tick all of these boxes and more.

UKWA members who operate under UKWA trading conditions have a number of advantages. The UKWA Conditions are recognised and acknowledged as the industry standard in the United Kingdom. They have been professionally drafted and tested and are understood and accepted by 3PL customers and their insurers. Many insurance policies include them as insured contracts and some policies insure standard trading conditions such as those of the UKWA only.

All of this means your insurance will generally be more competitively priced, placed on the correct basis with the right conditions insured, and any claims you make will be correctly and promptly handled.

For a warehouse keeper purchasing warehouse keepers liability insurance which provides a competitive and comprehensive policy on the correct basis and which will pay a claim if an incident occurs, is important for a 3PL and its customers – who will often require proof the insurance is arranged. Operating under UKWA conditions greatly improves your chances of ensuring that you get the correct policy in place.

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