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FREIGHT FORWARDERS’ LIABILITY INSURANCE

ABOUT

Freight forwarders are the backbone of the transport system and they need to comply with various laws in respect of freight forwarding, hauling, storing and other logistics. Any negligence, breach or non-performance on the part of their employees could cause damage to cargo that is handled as well as liability claims. This comprehensive insurance is a boon, identifying and covering the risks that Freight Forwarders are exposed to especially when demands on this sector are booming.

This Policy can be obtained by firms rendering business activities such as undertaking to transport and/or storing cargo or undertaking to arrange the transportation and/or storage of cargo in any of the capacities such as Third Party Logistics Service Provider, Multi-modal Transport Operator, Freight Forwarder (by Air, Rail, Road and Sea), NVOCC (issuing House Bills of Lading).

Activities may include provision of logistics and/or value-added services by the Insured such as acceptance, stock control, order handling, order picking, packing, loading and unloading, preparing for shipment, invoicing, assembling and labeling. Policy will indemnify financial loss suffered by Insured person arising out of claims for breach or non-performance of duties. Claims means damages, judgments, settlements that are awarded against the Insured person. Policy does not cover civil or criminal fines or penalties imposed by law, punitive or exemplary damages.

FREIGHT FORWARDERS’ LIABILITY INSURANCE

BENEFITS

LIMITS OF LIABILITY (SUM INSURED)

  • Two limits are required to be indicated, namely, a) limit for any one event and b) Aggregate limit for the Policy Period.
  • Policyholder can choose the liability limits for various covers in accordance with estimated exposure.

RANGE OF LIABILITY COVERS

  • Loss or damage to cargo: Policy covers legal liability/financial loss for physical loss or destruction or deterioration or contamination of or damage to Cargo in transit or in store, or from a delay of delivery.
  • Errors & Omission claims: Policy covers the Insured’s legal liability in respect of claims made against them by cargo owners, customs and excise authorities for breach of professional duty by reason of a negligent act error or omission.

DEFENSE COSTS

Policy also covers legal costs or expenses incurred by the Insured while defending any claim made against him within the Limit of Liability.

SEVERAL BENEFICIAL ADD-ON COVERS

  • Loss Mitigation Costs and Expenses
  • Debris Removal Expenses
  • Employee Tools and Personal Effects

TERRITORY AND JURISDICTION

While territorial limit is anywhere in the world the jurisdiction for this Policy is India.

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