Claim Example 1: Client sues moving company for damaging goods
You win a job for a large corporate client who’s moving offices. You are responsible for moving almost 900 boxes worth of office equipment. Some of this equipment is particularly expensive – e.g. computers, TVs, and other electronic equipment. Along the way, some of your staff get careless and accidentally drop these expensive items. They end up damaged. The client discovers these damaged goods after the move is completed. They file a legal claim against you, demanding compensation. Their lawyers allege that your safety measures were inadequate, and your negligence allowed the company’s goods to become damaged.Â
In such cases, Bailee’s Liability Insurance would be essential in covering you. Bailee’s Liability protects logistics companies that are responsible for goods belonging to someone else. This insurance policy would pay for lawyer’s fees, and the cost of damages.
See: Singapore logistics firms face rising numbers of missing parcels and delays
Claim Example 2: Warehouse and goods destroyed in fire
You store $500,000 worth of goods in a warehouse. A unit in the warehouse catches fire due to a fault in an electrical socket. The entire warehouse burns down, destroying all your goods stored inside it. Since you have Commercial Property Insurance, the insurer pays for the cost to replace your inventory.Â
See this real-life case: Massive fire ravages Tuas warehouse, causes walls to collapse
Claim Example 3: Employee arm crushed by falling goods 
One of your employees was stacking goods in a warehouse. All of a sudden, some pallets of goods toppled over. The goods landed on the employee’s arm, causing severe crushing injuries. The employee is rushed to the hospital, where surgeons race to save his arm. His complex operation and hospitalisation bill ends up being $40,000. He is also placed on 4 weeks of medical leave. His salary for the period he’s on medical leave is $3,000. Under WICA laws, you must compensate the employee for his $40,000 medical bills. You must also pay them for their $3,000 lost wages while on MC leave. Since you have WICA Insurance, the insurer pays this $43,000 expense on your behalf.
Work-related injuries/illnesses don’t need to be this severe to force you to compensate employees. Logistics employees, particularly manual labourers, spend long hours lifting goods. This can develop into repetitive stress injuries – e.g. back problems, shoulder problems, and other musculoskeletal issues. These can be classified as work injuries. For instance, if an employee goes to the doctor for chronic back pains as a result of heavy lifting at work, you would have to compensate them for their medical bills, and lost wages while on MC also.
See this real-life case: Worker killed by falling goods in Singapore warehouse
