Legal liability arising from cargo damage during the transit, any consequential loss faced by clients due to late delivery or physical damage of goods are some of the major risk exposures faced by a freight forwarders.
Any loss incurred by clients due to negligent acts performed by freight forwarders, their agents or subcontractors invites error and omission claims. Freight forwarders are held liable to compensate for such losses.
Legal liability claims may arise due to physical damage to third party’s property, bodily injury or legally recoverable consequential loss arising out of the operations of the freight forwarders.
A freight forwarder may be liable for breach of regulations or statutory non-compliance. Legal liabilities to the authorities like customs or port authorities are a threat for freight forwarders.
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