Freight forwarders have a huge responsibility to ensure the safety of the cargo in their care. They should purchase contingent cargo insurance as a way to protect them when unexpected incidents arise in moving freight from one place to another. Contingent cargo insurance is designed to fill some of the gaps that a carrier’s standard liability policy might not. It’s important to note that not all contingent cargo insurance policies are the same. There also exist instances where a broker may not be legally liable for cargo loss or any damage claims.
Check all the policy details with your insurance agent, and perhaps even an attorney, before signing off on any contract to ensure you are properly covered.
Other insurance options that can aid transportation specialists
General liability coverage will aid you in situations where you are being held responsible for damages to property or others. Most businesses carry this as part of their insurance portfolio. Auto liability is also another important coverage to cover the business in the event of a vehicular accident. Coverage is available for company-owned vehicles and hired and non-owned autos.
An umbrella policy will extend your liability amounts that you carry in your underlying policies, such as your General liability or auto liability policy. Be very careful to review the terms and conditions because policies offered vary widely. Some provide very little coverage, while others are often quite broad. Umbrellas are available in $1 million dollar increments.
Workers’ compensation is to protect employees in the event of injuries and illnesses and is state-mandated.
Errors and omissions (E&O) is also a policy you should carry in the event of an oversight or negligence. For example, if a broker gives the wrong information to a carrier by mistake which results in financial damage, the broker could be considered negligent and responsible for the damages. That type of claim can be covered by E&O insurance.