Cargo Theft: More Than Property Loss

In addition to the direct losses suffered, cargo theft can cause missed deliveries, lost sales and production downtime.

Although  many thefts go unreported because victims do not want their insurance rates to rise, unreported cargo theft can cause liability exposures. For example, stolen food, beverages and pharmaceuticals can be re-sold. If the theft goes unreported and the goods have been contaminated or counterfeited, the manufacturer or distributor (YOU, for instance) might be liable to consumers.

Electronics and other products may be tampered with, causing safety problems. Alcohol, tobacco and other controlled or dangerous stolen substances winding up in the hands of minors can lead to liability exposures.

Finally, cargo theft often has links to organized crime or terrorist groups. For all these reasons, insureds should report all instances of cargo theft to the appropriate authorities.

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