Freight Forwarder Liability

Category: insurance

Insurance protecting logistics intermediaries against claims for cargo damage, errors, or shipping delays.

Freight forwarders don't own the trucks or ships, but they orchestrate the route. If they issue a faulty Bill of Lading, route cargo into a war zone, or fail to maintain a refrigerated container stream (reefer breakdown), they can be sued for the financial loss. This policy acts as their professional E&O.

Common Examples

• The freight forwarder liability policy covered the client’s loss after an administrative routing error caused a shipment of perishable goods to spoil.
• Logistics firms rely on forwarder liability coverage to handle the complex legal defense costs that arise when multi-modal transport lines break down.