Unlimited liability for value-added services (VAS): What companies need to know
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Dangerous gray area: Why logistics companies quickly fall into the liability trap when providing value-added services
For many logistics companies, providing value-added services (VAS) alongside traditional transport, handling, and warehousing (TUL) services represents an attractive opportunity to differentiate themselves from competitors and expand their customer base. These additional services include services such as labeling, assembling, repackaging, and order picking. However, despite the many advantages such additional services offer, they also pose significant legal risks – particularly with regard to liability.
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3The dangerous misjudgment of liability
Many logistics providers mistakenly assume that their standard contractual clauses or the general terms and conditions for their value-added services are sufficient to limit liability in the event of damage. However, this is a misconception that can lead to a dangerous liability trap. When providing services that are not standard freight forwarding services, such as those commonly provided by value-added services, the German Freight Forwarders' Standard Terms and Conditions (ADSp) no longer apply. This means that the logistics service provider cannot expect liability limitation under the ADSp in the event of damage arising in connection with these additional services.
On the contrary: By providing VAS, logistics companies enter a completely different legal arena, where liability regulations are considerably stricter and often unlimited. What many don't realize is that this can result in liability amounting to millions of euros – without adequate insurance. Standard transport liability insurance, which normally covers liability for traditional transport services, generally does not cover damages caused by value-added services that are not typical for freight forwarding.
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The unrecognized risks and their consequences
The key question is: Why does this risk often go undetected? The problem lies in the fact that many logistics providers believe they are adequately protected by meeting the basic requirements for their contracts and general terms and conditions. However, in reality, drafting legally compliant contracts and general terms and conditions for value-added services requires an in-depth examination of the specific liability issues that can arise in this area.
It's not just the loss of revenue that can become a problem, but also the potential demise of the entire company. A claim resulting in unlimited liability can, in the worst case, threaten the very existence of the company. Those without adequate insurance are left without financial support – and the risk of insolvency is not far away.
It becomes particularly dangerous when logistics companies begin to expand their services into areas that go far beyond traditional transport – for example, by offering manufacturing activities such as packaging or assembly at customer request. This draws the company into an area that is not only more legally complex, but also subject to completely different liability rules.
The challenge here is that while standardized liability limitations may exist for traditional transport services, such special additional services require individual contractual arrangements. These are often not adequately considered, which can lead to significant legal and financial problems.
Avoid unnecessary liability risks – protect yourself in good time
Logistics companies that specialize in VAS or want to expand their services should ensure that their contractual agreements are legally sound. Timely advice from a specialized lawyer can help identify and avoid dangerous liability risks before damage occurs.
As transport law attorneys, we specialize in the legally compliant drafting of logistics contracts and general terms and conditions. We are familiar with the pitfalls that lurk when offering value-added services and know how to minimize liability risks. Terms like "assembly" or "customer-specific assembly" are not foreign to us; they are part of our everyday legal practice.
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