ImageFreight Forwarders Insurance Policy – Policy for Goods Transit & Shipping
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Types of Risk faced by Freight Forwarders

Cargo Damage

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.

Negligent Acts

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.

Third Party Lawsuits

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.


Fines and Duty

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.

Cover Relevant for Freight Forwarders

Liability Cover

  • Freight Forwarders Liability Insurance covers legal liabilities arising due to cargo damage or consequential losses due to late delivery. Coverage of all modes of transport under one sum insured is provided. Freight liability policy triggers claims in which the carrier or freight forwarder is at fault.
  • Coverage of legal liabilities to the authorities like Customs, Port Authorities for any breach of regulations is provided for.
  • Claims arising from errors and omissions and third party liability claims can also be covered.

Cargo Cover

  • Cargo Insurance provides all-risk protection against cargo damage. It covers all types of cargo against various risk exposures such as fire, lightning, collision of vessels with external objects.
  • Cargo Cover provides peace of mind and sense of security to your client and it builds your credibility in the market as well.
  • Add value to your freight forwarders business by arranging cargo insurance for your clients.

Add-on Cover

  • Warehouseman’s Legal Liability extension provides specialized coverage for cargo liability of an operator of a public commercial storage or distribution warehouse.
  • Factory and Warehouse Insurance protects your business premises from fire, explosion and other natural perils.
  • Protect your employees from any casualty under the Workmen Compensation Act, 1923 and Fatal Accident Act, 1855.

Frequently Asked Questions

Freight forwarder cargo insurance policy covers legal and contractual liability made against the business due to damage to cargo, errors and omissions, liability towards third party and uncollected cargo costs. It also covers physical loss of or damage to buildings and premises, liabilities, costs and expenses imposed by governmental or Judicial Authorities and Fines, duties and penalties. Freight forwarders cargo insurance includes sea freight insurance and international freight insurance.
The common exclusions under the freight forwarders liability are war, terrorism, packaging & hook losses, negligence of consignor, financial default or insolvency, willful misconduct, ordinary leakage, ordinary loss in weight or volume or ordinary wear and tear, inadequate packing and insolvency. These can be insured at a fee. In order to get complete coverage do not violate the policy terms.
The biggest advantage of freight liability insurance policy is that a single policy can cover many risks under one policy. You can include third party liability cover in your freight forwarders insurance policy by paying an additional premium and cover the bodily injury or physical loss or damage to the property. SecureNow will help you design a comprehensive and cost effective insurance cover.
This policy comes with various extensions which can be covered by paying an additional premium. The errors and omission extension, third party liability extensions etc. Warehouseman’s Legal Liability extension provides specialized coverage for cargo liability of an operator of a public commercial storage or distribution warehouse. Motor Truck Cargo Liability extension (MTCL) provides coverage for carriers’ liability for physical loss or damage to goods carried on their owned/leased vehicles.

Insuropedia

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What are the extensions available in the freight forwarder liability insurance policy?

There are multiple options of add-on cover available which can be added to the freight forwarders liability policy by paying an additional premium amount. The freight forwarders insurance policy covers liability of freight forwarder in case of damage to goods in transit and also covers contingent cargo. Various other kinds of risk are...
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