FREIGHT FORWARDERS INSURANCE
Covering the passage of goods from one place to another for hire and reward.
The Freight Forwarder’s Responsibilities
Freight Forwarders provide transport solutions to businesses that want to send goods or cargo from one country to another.
Once entrusted with someone’s good, the freight forwarder becomes legally responsible for taking all necessary steps and precautions to ensure the safety and transport of the cargo. This means the forwarder is liable to the owner for any damage or loss. While the forwarder is entitled to limit the amount they are accountable for, negligence could lead to a demand for compensation.
To protect themselves against legal risks, freight forwarders can take out additional transport liability insurance.
What does Freight Liability Insurance Cover?
Freight Liability Insurance is not cover for cargo. Instead, it is intended to protect Freight Forwarders from ‘errors and omissions’ as well as legal liability.
Anyone transporting goods across long distances may benefit from seeking transport liability insurance. This is because, at common law, the forwarder may be held responsible for loss or damage to goods in their custody.
This means the insurance covers forwarders against costs such as:
• Legal costs for defensive claims
• Containers and trailers on hire
• Clerical errors and omissions by the forwarder’s company
• Financial loss incurred by following loss or damage to goods
• Temporary storage costs that may be incurred following an incident
Cargo will be included in the cover depending on the freight forwarder’s terms and conditions. These would need to be understood and incorporated within the insurer’s policies.
Work with leading insurers to benefit from expert advice on the specific risks and requirements you, as a freight forwarder, might face. Get in touch for a consultation today.