What to do in the event of a claim


The Movement Of Goods

Every day approximately 50,000 merchant ships cross the seas and each year over 1 billion tonnes of goods are carried by UK registered HGV’s. Whilst many journeys are completed without any issue, accidents do happen!! Records show that thousands of containers are lost at sea each year and around a quarter of accidents on UK roads involve HGV’s. Here at The Insurance Broker we won’t leave you ‘stranded’, we can find the right policy to suit your needs , whether you’re a goods owner, freight forwarder, or a haulier. In the event that things go wrong, we are always here to help, starting from the first notification of the claim, all the way to the settlement, we are here to guide you through each step and to make the experience as smooth as possible.


Claim Settlement Process for Cargo And Freight Liability Insurance

Cargo insurance provides protection for goods owners against financial loss caused by various perils that may occur during transportation. Freight Liability insurance provides protection for the companies involved in the movement of customers goods and the limited liability applied by their terms and conditions when a claim is made against them due to loss or damage to the goods. If you happen to find yourself in this situation, there are two things you should do straight away;

  1. Notification Of Loss

The first step in the claim process is the notification of loss. This is the process of informing the insurer that an incident has occurred that may result in a claim. The notification should be made as soon as possible after the incident occurs and should include all relevant details. This would include the date and time of the incident, the location, and the nature of the damage or loss. Even if at the initial stage you are unsure whether you need to claim or not, report it regardless or at least ask advice as there are certain time limits and restrictions that may apply.

  1. Documentation And Assessment

Once the insurer has been notified of the loss, the next step is to provide the supporting documentation and assess the damage. This may include providing photographs or videos of the damage, as well as any other relevant evidence. Thorough and accurate documentation is essential for the assessment of the claim. Remember, this also includes any email correspondence with your customers, and anyone sub-contracted to move or arrange movement of goods.


How to make a claim

Damage or loss can come unannounced and happen at any time. Transportation of goods always comes with a risk and you cannot guarantee the safety of the goods once the transit has begun. If the worst happens , and you need to make a claim here are some handy tips ;

  1. Make sure to inform your broker/ insurer of any losses or damage as soon as possible, it’s worth noting that there are time limits, for example BIFA gives 9 months from date of loss to completion of the claim
  2. Keep all correspondence relating to the incident, including anyone in the chain of transporting the goods, this is often required by insurers to establish facts on how a loss has occurred, and who is liable
  3. Keep a good record of invoices, waybills, and other documents
  4. Be honest , providing false information can invalidate the claim and affect payments
  5. Read through your policy terms and conditions , look at what’s covered and the policy excess
  6. Keep record of any communications with your broker to help you keep track of your claim
  7. Not sure if you should raise a claim? Get in touch with your broker and they will be able to advise


What to do if someone claims against me ?

The movement of goods may involve multiple methods of transport and various contracted companies. If someone in the chain should have a loss or damage reported to them, they may then raise a claim against you , and hold you liable for the cost of the loss or damage, and although this is standard practice in the trade , it can become complicated , so below we have some handy tips on what you should do if this happens to you;

  1. Acknowledge the correspondence , and advise them you will contact your insurer or broker
  2. Do not admit to anything , this is referred to as ‘admitting liability ‘ – a simple acknowledgement is sufficient at this early stage
  3. Advise your broker as soon as possible, they will be able to give advice and open up a claim if necessary
  4. Save all correspondence from all parties involved



So, if you’ve made it this far, remember to keep calm and contact your insurance broker! We have learnt the technical insurance jargon, so you don’t have to! Insurance brokers’ are here to make reporting a loss or damage and dealing with the fallout as easy as possible! Remember, there are no silly questions when it comes to insurance, if in doubt just ask! We will assist you through every step of the claim, from first notification to the settlement, and everything in between.