Call for a quote:021 818 8315

Get Insurance Quotes for Deliveries & Couriers Today

Logistics Insurance in South Africa


Moving cargo or transporting goods as a business requires specialised insurance cover. Find out how logistics insurance works in South Africa and what cover your business needs.

Logistics companies face unique risks related to the transportation of goods and people. Aside from common perils like theft and fire, they also face perils like deterioration of stock, hijacking, and even risks of cyber breach. Is your logistics company safe from financial implications of these and other risks?

You can find out if you have adequate insurance and what commercial insurance would best suit your needs below. Adequate cargo insurance and transit insurance cover can save your business when disaster strikes.

What is Cargo and Logistics Insurance?

Cargo insurance policies and logistics insurance are both forms of insurance coverage designed to cover the unique perils of the transportation industry. Since there are different branches in the logistics industry, the insurance policies will differ.

South Africa’s logistics insurance market is complex and competitive. For this reason, there is a wide variety of options and customised plans to choose from. The logistics insurance cover you need will depend on the industry you operate in.

How Does Logistics Insurance Work in South Africa?

To begin, you can get quotes for an insurance policy suited to your industry. Some insurers offer a logistics insurance package that includes multiple cover types to best cover your unique risks. The business owner typically signs an insurance agreement with the insurance company, after which their business insurance coverage begins.

They usually pay a monthly premium to the insurer in exchange for the cover they get. If a covered peril occurs, they can then claim from the insurer to cover the financial losses or damages. Many businesses opt to add specialised cover items to their core insurance coverage, thus building a business insurance portfolio.

What Does Logistics Insurance Cover?

Logistics insurance can cover a host of situations and perils. Since you are moving objects by air, ship, rail, or road, the cargo itself often needs to be covered, too. Sometimes acts of employees can lead to liability claims, so liability cover is important to include in your plan, too.

Because the risks and perils are so broad in the logistics industry, it’s ideal to find a policy that includes subcategories of insurance that will cover all the risks related to your business. Below, we’ve listed some of the most common types of cover you can consider including in your logistics cover.

Types of Logistics Insurance

Goods in Transit / Stock in Transit

Also called cargo insurance, this covers the collective damage resulting from theft, damage, or loss of some or all of the goods being transported, often including deterioration of stock, if this is a contractual liability.

Cyber Insurance

Whether your company operates in air freight or inland marine logistics, you’ll be working with data and sensitive information. Breaches in your company’s firewalls or loss and leaking of sensitive information could result in massive consequential losses. Even companies who use cyber risk management tools are not 100% safe from transport documentation or other sensitive files being stolen. Therefore, it’s important to include comprehensive coverage for cyber attacks in your policy.

Auto Liability Insurance

Although not required by law, many clients include auto insurance as a contractual requirement, as well as licensing for vehicles and transport operators. If you need a more affordable option than full fleet insurance, third-party only cover is ideal and will at least cover third-party claims.

Marine Insurance / Marine Transit Insurance

From storms at sea to late delivery, Marine insurance can cover the unique perils of shipping and delivery by sea or river. Marine transit insurance is vital for any shipping company. You can get specialised cover from various reputable insurers in South Africa.

Marine insurance is often considered one of the advanced specialty insurance products available in the country. You can also get container insurance if your interest is specific to containers and not to the vessels in addition. This type of insurance usually includes accidental damage cover and sometimes high sea theft, too.

Fleet Insurance

This is the most common item included in logistics insurance. Since the consequential damages of an automobile accident can cost a business owner a lot, auto accident cover is essential. This type of insurance is designed to cover all the vehicles your business owns in one policy to reduce admin costs. It can also help a business cover collision losses, medical payments, and third-party liabilities.

Importance of Insurance in Logistics

When working in logistics, you’re often working with large amounts of valuable products or transporting people. You could be held liable for the damage to cargo if something goes wrong or the damage to customer if you’re in an accident with a passenger on board. These costs can quickly become exorbitant.

That’s why it is a good idea to get the right logistics insurance for your needs before the unexpected happens. It could mean the difference between continued profit and closing your doors for good.

You don’t have to search for a quote for the right cover. Instead, you can fill in the form at the top of this page, and we will connect you with the ideal insurer for your needs!

Contact Us

We're not around right now. But you can send us an email and we'll get back to you, asap.

Start typing and press Enter to search