Liability and marine insurance are the two important types of cover for freight forwarders to consider. Forwarders must have public liability insurance - like any other business - and employer's liability insurance, if they have staff. It's also advisable to insure any premises owned, along with their contents.

Liability insurance

All freight forwarders should have liability insurance cover. This offers protection from the types of compensation claims outlined on the page in this guide on the importance of insurance for freight forwarders.

Policies are available from a wide range of brokers, although a specialist insurance broker with experience of the relevant insurance policies is advisable for freight forwarders. Liability insurance does not insure the goods themselves - this is usually the responsibility of the buyer or seller.

Marine insurance

This covers the loss or damage of goods being transported internationally. Marine insurance policies also cover air, road and rail transport.

Because freight forwarders and carriers are entitled to limit their liability, owners of goods who don't insure them during international transport will only be entitled to a fraction of the goods' real value. Many freight forwarders carry their own marine insurance policies so that when requested by their customer they can provide it as an added value service.

( linda )16 Nov,2011

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