Transport liability rates fall: Marsh survey

LONDON—Liability coverage prices are falling for transport and logistic operations and buyers are taking advantage of price breaks by purchasing higher limits, a recent report reveals.

Marsh Ltd.'s survey, Liability Insurance Buyers Report - Transport and Logistics Sector, found that 141 European companies have purchased 8% more coverage than in 2004 as prices have fallen by around 20%.But liability exposures are changing, Marsh points out.

"Over the last years several forms of transportation have pushed vehicle construction capabilities into new areas, increasing vehicle load capacity and earning potential for these vehicles," Brian Sullivan, London-based European practice leader for transport at Marsh, said in a statement. Building larger vehicles "comes with implications for liability risk management and insurance," he said.

A potential impact on liability rates also could come from proposed changes by the European Commission that could lead to pan-European forms of class-action lawsuits, Mr. Sullivan pointed out."