Freight forwarder liability insurance is something that shipping companies use. The subject of such insurance is civil liability to the client and third parties of any damage caused by non-performance or improper performance of shipping services, which are included in the contract, and additional ones are in accordance with the provisions of the Civil Code.
We are talking about a number of different activities, such as the conclusion of an appropriate transport contract, preparation of all documents related to the transport, development of shipping instructions, unloading and loading of shipments, control over the number and weight of goods, but also the storage of shipments. It sometimes happens that the insurance will also cover damages in connection with the loss of loading, e.g. in the vent of theft with burglary, theft of means of transport itself together with the goods, as well as damage to the good handed over during the shipping process.
We will find offers from insurance companies, which may cover damages caused by negligence. This includes those occurring during transport as a result of the willful fault of the subcontractor, violation of road traffic regulations during transport, but also those which occurred by handling over the goods to an unauthorized person, and a number of others. Most often, insurance contracts contain information that the insurance will not cover civil liability for losses that were caused intentionally or resulted from gross negligence.
The freight forwarder is responsible for selecting the appropriate means of transport, as well as checking the subcontractors of a given order. In this area, several problems may arise, for example with the payment of compensation, when the forwarder finds a carrier that commits unfair practices.
Due to the scope of insurance, the offers of insurance companies may be different. The same applies to the obligations incumbent on the policyholder. It is necessary to always verify the scope of protection offered by the insurer. Before we sign the contract, it is worth seeking advice from someone experienced, e.g. a person who recommends a proven insurance company.
It is crucial to always bear in mind the fact that when the freight forwarder takes over civil liability as a road carrier, then the scope of insurance covers civil liability for material and financial damages.
All shipping companies have to deal with the risk of various types of dangers that are difficult to predict. Freight forwarder’s third party liability insurance allows you to protect yourself against various situations that are closely related to your forwarding business. When choosing specific tailored insurance, we can have peace of mind about our company.