Freight Broker & Freight Forwarders Insurance 

Freight Forwarders, Freight Brokers, and Logistic Providers all have unique job descriptions in the cargo delivery arena. In the event of the loss or damage of cargo, Freight Forwarders are expected to settle most freight claims, but other parties may be found liable depending on the nature of the incident, and especially if the dispute goes to court. Here’s what you need to know about freight broker and freight forwarders insurance.  

It is important to obtain the right insurance solutions that are specifically tailored to address the unique needs of your business. Whether you’re planning cargo shipping for a customer looking to make a single shipment for a relocation or for a company that handles dozens or hundreds of shipments on a daily basis, you need the right insurance products to protect your business, your client’s goods, and for your peace of mind.

freight broker and freight forwarders insurance

What’s The Difference Between Freight Broker And Freight Forwarders Insurance

There are many different types of insurance products for freight brokers and forwarders, including cargo insurance, freight insurance, shipping insurance, transit insurance, moving insurance, and transport insurance, all of which cover the merchandise against loss or damage during transportation.

In many instances, cargo carriers only offer legal liability insurance, which does not cover all the shipping risks of an entire cargo shipment. It is the responsibility of each business to identify its risks and get the necessary extra coverage for shipments.

All-risk cargo shipping insurance is particularly important for large cargo shipments because they’re more susceptible to damage compared to smaller ones. The challenge, however, is finding the right cover at the best rates. Cargo carriers are generally expensive, but you can work with your transport insurance brokers to compare rates and find the best package for your needs.

Indeed, cargo shipping insurance coverage offers greater peace of mind compared to legal liability or carrier liability insurance. The two types of cargo insurance options available include:

  • Contingent cargo insurance – This is a legal requirement of all freight forwarders, and the rates are based on the weight – like $0.60 per pound
  • Primary cargo insurance – This product ensures items for their full actual value, and are typically issued per shipment or based on an annual policy to cover multiple shipments per year.

Most carriers also have freight insurance, while importers invest in separate cargo insurance, such as marine freight insurance or replacement value cargo insurance, to enjoy the full cover that is not provided with carrier liability. You may also consider inland cargo insurance for transporting domestic goods via land (rail or truck) and air, or ocean cargo insurance for shipments made via ocean.

Keep in mind that any additional cargo insurance products are intended to increase your bottom line, allowing you to provide your clients with coverage that extends beyond the minimum, giving them greater peace of mind.

Get a Freight Broker Or Forwarders Insurance Quote

At Brookhurst Insurance, our agents are experienced in freight broker and forwarder insurance products. We would be happy to discuss customized plans for your freight brokering or forwarding business to be insured properly. This can give you some peace of mind to run normal day-to-day operations without the need to worry about accidents beyond your control. Request a quote online or call 818.465.7860 to speak with a freight brokering or forwarding insurance agent today!

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