TRANSPORT TALK: The Last Thing on Your Mind—Until It’s the First

In the fast-paced world of transport and logistics, operators are constantly on the move. Time is money, and insurance often sits quietly in the background—until something goes wrong. It’s only when a claim is made that many realise their cover hasn’t kept pace with their business.

As the New Zealand Trucking Association’s Key Insurance Partner, we are seeing increasing risk exposures—particularly among operators whose policies haven’t been reviewed by us and needs refinement.

Logistics and Errors & Omissions Liability: The Transport Package

Transport isn’t just about moving goods—it’s about managing logistics, documentation, and delivery accuracy. Logistics, or Freight Forwarders Liability Insurance, protects your business against errors and omissions in the logistical chain.

We recently assisted a New Zealand transport company that delivered refrigerated goods to the wrong location. The financial loss was significant—but thanks to their Freight Forwarders Liability cover, the claim was paid, and the business kept moving.

Imposed Excesses: The Underlying Costs

Many older insurance and risk programmes have imposed excesses for linehaul transport, single vehicle accidents, and health and safety claims. Often, these are simply rolled over year after year without being contested by brokers.

In a recent review, we found a policy from another broker that left the insured with a $10,000 excess for single vehicle accident claims. The same policy had a standard excess applied to theft and malicious damage claims—an unnecessary burden that could have been negotiated or removed.

This can have a major impact at claim time. If your broker isn’t working to negotiate better terms, you could be left footing a much larger bill than expected.

Cyber Insurance: The Invisible Threat

Cybercrime is no longer a distant concern—it’s here, and it’s growing fast. With the growing popularity and use of AI, ransomware attacks are becoming more sophisticated and harder to detect. Even small transport businesses are targets, especially those who use internet connected systems to operate their businesses.

NZ Police Detective Inspector Stuart Mills recently warned of the rising tide of cyber threats in New Zealand at the NZ Steadfast Conference at Wellington in September. Many operators still don’t carry cyber insurance, leaving their business exposed to data breaches, system shutdowns, and reputational damage.

A large transport operator received a ransomware attack resulting in a complete shutdown of operations and consequential financial loss to their business. The Cyber product they had purchased through O’Connor Warren Transport paid for the cost of rectifying the cyber-attack and paid for their financial loss during this period.

Management Liability Insurance: Protecting Your Leadership

Management Liability references a modular group of insurance products. Directors and officers Liability and Employment disputes cover are often core policies in this group. Directors and officers of transport companies face increasing scrutiny, especially when workplace injuries or personal grievances (PGs) are involved. Management Liability products can protect directors and officers from claims related to these loss types - It’s a vital layer of protection that’s often overlooked until it’s too late.

A mid-sized transport operator in New Zealand recently faced a legal claim from a former employee alleging unfair dismissal and breach of employment obligations. The claim included demands for compensation and legal costs and named the company’s directors personally in the proceedings.

Fortunately, the business held management liability products. The required policy responded immediately, covering the legal defence costs and settlement negotiations. It also protected the directors from personal financial exposure, allowing them to focus on running the business without the stress of litigation hanging over them.

Don’t Wait for the Wake-Up Call

Insurance should be a strategic tool, not a reactive one. If your insurance and risk programme is old and hasn’t been thoroughly reviewed, it’s time to rethink the relationship with your broker.

At O’Connor Warren, we’re not just brokers—we’re transport specialists. We walk the yards, talk to drivers, and understand the operational realities of your business. That’s how we ensure your cover reflects your actual risk.

Let’s talk—confidentially, independently, and with your business front of mind. Contact the New Zealand Trucking Association’s Key Insurance Partner to review your insurance and risk programme.

O’Connor Warren Insurance Brokers: Leading, Specialist, National

Article: featured in the New Zealand Trucking Association September Newsletter