Freight Forwarders Insurance
Freight Forwarders insurance, known as cargo or freight insurance, is designed for freight forwarders and logistics companies. It insures against any hazards and financial losses that may arise during the transfer of products or cargo.
Freight forwarders are intermediaries that facilitate the movement of goods from one location to another, typically across different modes of transportation, such as ships, planes, trucks, or trains. While they don’t own the goods, they are responsible for arranging the logistics, coordinating shipments, and ensuring that the cargo reaches its destination safely and in good condition.
Freight forwarders insurance offers coverage for businesses involved in the transportation and logistics industry. Shippers, Consignees and Logistics Companies should consider this insurance.
Lifecycle Fire and General assess each party’s specific needs, the value of the transported goods and the potential risks involved. Depending on the evaluations, we help our clients determine the appropriate coverage plan for their specific requirements.
The international business trader who imports or exports goods and Manufacturers and Distributors of goods who rely on freight forwarders to transport their goods should also consider cargo insurance.
The New Zealand Freight And Logistics Market size is expected to grow from USD 17.16 billion in 2023 to USD 20.10 billion by 2028, at a CAGR of 3.21% during the forecast period.
A recent study commissioned by Te Waka (Waikato’s regional economic development agency) found that the overall growth in freight volumes from 2020 to 2030 in the Waikato and Bay of Plenty regions could be as much as 47% to 65%.
The population of Golden Triangle is expected to grow to 3.24 million by 2043, registering a growth rate of 31%. It may create unprecedented demand for freight handling facilities in the region.
The freight forwarding industry will increase dramatically in future. Lifecycle Fire and General can assist you in mitigating your risks in this industry by providing Freight Forwarders Insurance.
Freight Forwarder’s insurance typically offers several types of coverage against different risks and liabilities that may arise during goods transportation. The specific types of coverage can vary depending on the insurance provider and policy, but here are some common types of Freight Forwarders’ insurance coverages
- Cargo Insurance: Cargo insurance offers coverage for loss or damage to goods in transit. It protects against risks like theft, fire, accidents, natural disasters, and mishandling. Cargo insurance can be tailored to different modes of transportation (e.g., marine cargo insurance for shipments via water) and based on the actual value of the goods or their declared value.
- Errors and Omissions Insurance: This coverage protects freight forwarders against claims resulting from errors, omissions, or negligence in their professional services. It covers financial losses incurred by the shipper or consignee due to mistakes made during the freight forwarding process, such as incorrect documentation, improper customs procedures, or failure to meet contractual obligations.
- Liability Insurance: Liability insurance is for third-party claims arising from property damage or bodily injury caused by the freight forwarder’s operations. It protects against lawsuits, legal expenses, and potential compensation that may be required if the freight forwarder is found liable for damages during the transportation process.
- Warehouse Legal Liability Insurance: If a freight forwarder operates a warehouse or offers warehousing services, warehouse legal liability insurance may be necessary. This insurance covers any loss or damage to goods kept at the freight forwarder’s facility or storage. This coverage typically includes risks such as theft, fire, vandalism, and water damage.
- Freight Liability Insurance: Freight liability insurance covers the freight forwarder’s liability for loss or damage to cargo during transit. It protects against claims filed by shippers or consignees for cargo-related losses that occur while the goods are under the care, custody, and control of the freight forwarder.
- Delay in Start-Up (DSU) Insurance: DSU insurance offers coverage for financial losses resulting from delays in the start-up of a project. It causes damage or loss of critical equipment or materials during transportation. This coverage can help compensate for the additional expenses incurred during the delay and the potential income loss.
Freight Forwarders should carefully review specific terms, conditions, coverage limits, exclusions, and deductibles of an insurance policy before purchasing it.
Freight forwarders insurance offers coverage for various risks that can arise during transit.
- Loss or damage to cargo: This coverage protects against the loss or damage of goods in transit. It typically includes coverage for perils such as theft, fire, accidents, natural disasters, and mishandling.
- Liability: Freight forwarders were often held liable for any damage caused to the cargo or third-party property during transportation. Liability coverage protects against claims arising from such incidents.
- Errors and omissions: Freight Forwarders’ insurance can also cover errors, omissions, or negligence in handling documentation, customs procedures, or other administrative tasks.
- Delayed delivery: If cargo gets delayed beyond the agreed-upon timeframe, Freight Forwarders’ insurance may offer coverage for additional expenses incurred by the shipper or consignee due to the delay.
- Risk Mitigation: Freight forwarding involves inherent risks, such as loss, damage, theft, or delays during transit. Freight Forwarders’ insurance offers financial protection against these risks, helping to mitigate potential losses and safeguard the business’s financial stability.
While Freight Forwarders’ insurance offers coverage for various risks and liabilities, there are exclusions. This insurance does not cover-
- Damage or loss that happens before placing the goods under the care of the freight forwarder.
- Damage or loss of goods due to inadequate packaging or improper handling by the shipper or consignee.
- Indirect or consequential losses, such as loss of profits, business interruption, or other financial losses resulting from the damage or delay of the goods.
- Certain aspects related to delayed delivery result in associated losses.
- Certain high-value or specialised cargo, such as fine art, jewellery, precious metals, perishable goods, or hazardous materials. Additional insurance is required for such items.
- Losses resulting from acts of war, terrorism, civil unrest, or certain natural disasters
Choosing freight forwarders insurance from Lifecycle Fire and General offers several benefits for businesses involved in transportation and logistics:
- Freight Forwarder insurance gives peace to the freight forwarders and their clients. It reassures clients that their cargo is safe against unforeseen events.
- Some shippers or clients may require proof of insurance coverage before engaging the services of a freight forwarder. This insurance helps meet these compliance requirements.
- Obtaining Freight Forwarders insurance demonstrates professionalism and a commitment to responsible business practices. It signals to clients and partners that the freight forwarder takes their role seriously, prioritises risk management, and is prepared to handle unforeseen circumstances.
We offer Freight Forwarder insurance that meets the specific needs of a business. We can customise policies based on factors like cargo type, modes of transportation, geographical scope, and coverage limits. It allows business owners to obtain coverage that aligns with their unique operations and risk profiles.