Stevedoring and Warehousemen's operations can be seen as different stages of what is fundamentally the same operation the process of loading or unloading cargoes and the holding or storing of the same prior to despatch, whether overseas or inland. 

Usually, an operator will combine both activities in order to provide a complete service from quayside to final onward despatch but whereas it is quite a common occurrence to provide coverage for a company that supplies the stevedoring element only it is rare to have a Warehousemen's operation existing in isolation and, in this context, insurance for warehousing on its own can present a number of problems and it would be therefore more appropriate to consider this risk in conjunction with Stevedoring activities.

In its simplest form it can be said that Stevedores are concerned with loading and unloading whilst Warehousemen are responsible for the storage of cargoes.  However, although this presents a straightforward definition of function, in practice the division is usually blurred and nowadays most Stevedoring operations also provide Warehouse facilities, thus any insurance cover provided in this situation must take this feature into account.

Whether cargoes are being loaded or unloaded or being held in store operatives will have a responsibility for the property that they are handling and also for third party bodily injury claims resulting from their activities.  Instances of damage to cargo represent by far the main proportion of claims submitted to underwriters.  The transport revolution since the early 1960's has meant that the loss of a single container can result in a claim for many thousands of Pounds, whilst the sheer number of containers in use results in extremely high values being concentrated in a small area.  In these circumstances any accident may result in the operator being exposed to a potentially ruinous claim.

The main areas of exposure may be summarised briefly as follows:

(a) Damage to cargo being handled - ranging from such things as damage to motor vehicles whilst being unloaded to the deterioration of sheep's brains due to the failure of a refrigeration unit.

(b) Damage to the vessel from which cargo is being unloaded - Usually caused by the stevedore's equipment.

(c) Damage to leased/hired equipment - It is common for a Stevedoring Company to supply personnel only and lease or hire equipment necessary to carry out their operations.  The contracts for such hire or lease invariably create risk exposures.

(d) Contractual liability exposure - Working within a port area any company will find itself required to sign contractual agreements regulating its relationship with the port authorities and other companies working there and these will create liabilities that must be covered.

(e) Third Party Bodily Injury and Property Damage - in the situations where other parties and/or their property can come into contact with the operations being covered.

(f) Errors and Omissions - attributable to a failure to provide the represented services or where due to the incorrect application of expertise a loss results.

LSR acknowledge the status of stevedores, either individually or in their own right or as part of the overall operation of a port authority, and are able to arrange appropriate cover for the stevedoring company in either case.