There is an increased demand for liability insurance and risk management when the responsibilities of Zip Logistics companies and freight forwarders are extended and the coverage is widened. Since a freight forwarder insurance policy covers the shipping risks, many companies consider getting this kind of insurance.
At first, this insurance policy was created for back offices and offshore businesses since the growth of the logistics industry can be affected if there’s no insurance. Continue reading to learn the coverage of your freight forwarding insurance policy.
Damages or Loss of Goods While in Transit
Your freight forwarder insurance policy can save you from legal woes for cargo loss or damages to the mode of transport owned by another party. The policy also covers the consequences due to losses and interruption of operations that may occur. Also, you might not need to be legally responsible to pay for the duties or fines since it may be included in your policy.
Unforeseen Cargo Incidents
This insurance policy insures shipments or cargo carried by any various transportation vessels such as trains, ships, and trucks, among many others. What will benefit you the most here is that the policy takes care of the matter and covers the payments if your customers complain about their cargo and file a case against you
Therefore, it’s safe to say that the coverage is broad. Moreover, liabilities from port authorities or customs for violating their regulations are covered by your freight forwarding insurance.
You have the option to add extra coverages to your freight forwarder insurance policy by paying additional premium expenses. One example of this is errors and omissions coverage. It covers the burden of negligent actions of your policyholder, sub-contractor, or agent.
Another example is the third-party liability coverage that covers physical damage, injury, or loss of your property. The legal liability extension is recommended for your business needs since it includes the liability of the distribution or public commercial warehouse cargo operator.
You can also add the motor truck cargo liability coverage to cover the expenses of damaged or lost goods which are transported on an owned or rented vehicle. Problems that may occur in loading and unloading cargo is covered as well.
Your Business’ Safety
Your freight forwarder insurance policy is crucial for your business because it covers the distribution, warehouse, configuration, package, and tracking of your cargo. You can ensure not only cargo but also your business from accidents such as explosions, fires, or other calamities through this insurance policy.
You can also secure your employees with this policy. Hazards at work are inevitable, so if one of your employees gets into an accident, it is your responsibility to give due care. This is indicated in the Fatal Accident Act and the Workmen Compensation Act. This can cost a lot, so you can lessen your financial burden by availing of a freight forwarder insurance.
Finally, you know how important it is to get a freight forwarder insurance policy. Needless to say, it will benefit your cargo, employees, and your business in general.