Is responsibility for customer goods the same as insurance on those goods?
A contract can allocate responsibility, but it does not by itself establish that an insurance policy covers the goods or the liability. Cargo-transit coverage terms depend on the applicable form.[1]
Give the broker the custody timeline, contract limits, declared values, carriers, subcontractors and routes. Ask the proposed form to identify insured interests, exclusions, valuation and when its terms begin and end; contract responsibility alone does not establish insurance.[1]
Read the Supply Chain and Logistics Insurance Buying Guide
Sources and Further Reading
- Commercial Insurance Guide — California Department of Insurance. Revised June 14, 2024; commercial property, inland marine, boiler and machinery/equipment breakdown, commercial general liability, commercial auto, umbrella, and workers compensation. California-focused guidance; confirm other jurisdictions and actual policy wording.
California commercial guide on property, inland-marine, equipment breakdown and auto topics.
- Small Business Insurance — National Association of Insurance Commissioners. BOP and exclusions; general liability and exclusions; professional liability, crime and cyber; business property. General educational descriptions, not policy terms.
- Business Interruption and Business Owner Policy — National Association of Insurance Commissioners. Business interruption and contingent business interruption; covered physical damage and dependent-business trigger qualifications.
NAIC explanation of business-interruption and contingent-interruption trigger limits.
- Warehousing: Hazards and Solutions — Occupational Safety and Health Administration. Material handling, powered industrial trucks, slips/falls, chemicals and ergonomic hazards; conditions depend on actual tasks and sites.
OSHA warehouse hazards to help describe actual sites and handling tasks.
- DWC Employer Information — California Department of Industrial Relations, Division of Workers’ Compensation. California employer workers compensation information; California-specific, including stated out-of-state employer examples.
- DWC FAQs for Employers — California Department of Industrial Relations, Division of Workers’ Compensation. Employer FAQ on California workers compensation requirements; one-or-more employee statement and separate sole-proprietor treatment.
- Cybersecurity for Small Business — Federal Trade Commission. Supplier risk, response planning and cyber-insurance buyer questions. Educational guidance, not policy wording.
Spot, a product of Tools for Enlightenment, publishes this guide and works in the commercial insurance market. This is general buyer education; policy terms and state-specific obligations determine coverage and requirements.
Updated 2026-09-28. Editorial Policy
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