Freight Liability Insurance Weight Limitation Explained
As Marine Insurance specialists we regularly deal with Freight Forwarding companies, as a Freight Forwarding company it is very important that a Freight Transport Liability Insurance policy is in place. This policy protects the company against any claims that may occur and fall under the accepted perils that are covered.
Every Freight Forwarding company will have their own set of trading conditions which explain the liability of that company should any incident occur. As is the case with most trading conditions the companies liability will be limited by weight, this means that the claimant in most cases will not receive settlement in full for all claim costs. Settlement is worked out by SDR’s (Special Drawing Rights) per Kilo, a lot of our customer tend to trade under BIFA (British International Freight Association) which give a rate of 2 SDR’s per Kilo, this converts to around £2.13 per kilo.
As you can imagine when a claim does occur sometimes the goods owner themselves is unaware of this weight limitation and the small settlement offered comes as a shock. The goods owner is then disappointed at the service provided by the Freight Forwarder and this can cause problems such as bad reviews and no return custom. This is why we urge our clients to push the importance of Marine Cargo Insurance to their customers, this is the only way that a full recovery of any loss can be made.
Not only does a Marine Cargo Insurance policy cover your customer it also protects you.
Call our office and find out more today!