Freight Forwarder Insurance Coverage
One of the rapidly growing trends in business is the use of non-owned resources to achieve the bottom line. Delivery companies, for instance, are increasingly subcontracting other couriers and agents to fulfill their customers’ requests. Indeed, today’s logistics and freight forwarding companies are expanding their responsibilities and reach geographically, raising concerns for risk management and liability insurance, among other things. Freight forwarder insurance coverage has become a necessity for businesses jumping onto this trend.
As freight forwarders grow their businesses, they’re exposed to more and more risks that are unique to their industry and operations. Failure to adequately protect against these risks can leave you exposed to costly claims. To protect yourself against such risks, you should seek the help of professional insurance brokers to identify the best insurance products for your business to thrive in this challenging environment.
Finding The Right Options For Freight Forwarder Insurance Coverage:
Step 1: Regulatory requirements
Freight forwarders are required by law to adhere to Carmack Amendment Liability, which is included in the USC code §14706, and defines how claims for freight loss and damage should be handled. In this regard, forwarders should obtain the minimum comprehensive cargo insurance, which protects any loss or damage to the cargo and addresses any issues with the carrier so the client does not incur any losses
Step 2: Identifying your Risks
Freight forwarders are responsible for the safety of shipments throughout transit, from origin to destination. They issue the bills of lading, which makes them liable for any loss or damage, by default. Although forwarders should have a written agreement between all parties involved, including the responsibilities of the broker or carrier that may make them liable if proved to be negligent in their duties, freight forwarders should protect themselves fully by obtaining all the necessary coverage options.
Step 3: Getting Insured
Once you identify your insurance needs, you should contact an insurance broker for assistance in getting the best packages and rates. Your broker will help you avoid overpaying or leaving gaps that may be exploited in a claim.
Freight forwarders face a minefield of different customs requirements and shipping terms and conditions, as well as the large quantity of paperwork involved, which increase the risk of financially devastating consequences. Errors and omissions cover is designed to protect you from claims made against you due to errors and omissions such as clerical mistakes, incorrect instructions, or faulty arrangements, as well as any act of negligence or breach of duty.
Your insurance broker can help you identify other insurance options that are relevant in your industry and important for your business, including cargo liability, fines and penalties, and pollution (clean-up) costs, among others.
Get a Freight Forwarder Insurance Quote
At Brookhurst Insurance, our agents are experienced in freight forwarder insurance products. We would be happy to discuss customized plans for your freight 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 forwarding insurance agent today!