Freight forwarders are commonly known in the logistics industry as the ‘Architects of Transport’. They are involved in all manner of transport operations which are usually accompanied by other auxiliary services. Freight forwarders have to abide by various laws and terms and conditions of foreign agreements and individual contracts. Freight forwarding is a practice that continues to grow all over the world and with that growth there has been a surge in the demand for freight forwarder insurance policies. A freight forwarders insurance policy is essential because it covers a plethora of risks that can affect the cargo in transit.
Freight forwarders liability insurance comprehensively covers several parties including road carriers, relocation firms, warehouse keepers, freight and logistics operators and custom house brokers. It is no surprise, therefore, that scores of insurance brokers are selling freight forwarders policies. The policies have been specially formulated for freight forwarders. The following liability coverage is offered by this insurance policy:
Loss or Damage to Property in Transit
A freight forwarders insurance policy offers in-depth coverage against legal liability as a result of cargo damage and loss or damage of the transport vessel among others. Anything can happen when goods are transported especially at sea including theft by pirates and attacks from maliciously interested parties. The policy also covers losses that may arise due to the business disruption caused by loss or damage of goods being transported. Moreover, the liability insurance policy also covers fees and fines that may arise due to legal liability encountered when goods are in transit. It is clear to see that the policy is quite comprehensive and is indispensable to any and all freight forwarders.
Contingent Cargo Cover
A freight forwarders liability insurance policy can be a lump sum cover extending to all cargo regardless of the method they were transported i.e. sea, air, rail, road. The policy will indemnify a freight forwarder if an accusation is made against them for their choice of transport or any other reason which leads to the loss or damage of a shipment. Such coverage ensures that your business is also completely covered. Furthermore, the policy will pay any and all fees owed to the authorities resulting from a breach of rules and regulations.
Complete Business Cover
With the aid of a freight forwarders insurance policy, you can protect your property against all manner of risks including fire, flooding and other natural calamities. The policy covers all the services that a transportation and logistics company would typically offer.
The policy will also cover any injury or sickness befalling any of your employees while at the workplace. You, the business owner, would under normal circumstances, be responsible for compensating the aggrieved party. Some workers’ injury compensation claims may be so severe they put a significant strain on your business’s finances. However, a freight forwarders liability insurance policy will cater for all the costs to help your employee recover.
The role that this insurance policy can play in safeguarding not only your cargo but also your business and its employees is almost limitless. Its importance to a freight forwarder cannot be overstated.