As a freight forwarder, you corporation is only a small piece in a complex system of supply chains that span the globe. Because you are often held accountable for third-party goods, you could easily find yourself liable for mistakes out of your control. Corporations could hold you liable for a variety of mistakes whether you are truly responsible or not. Cargo insurance programs could potentially help protect you from a crippling lawsuit or financial loss.
What Is Commonly Covered in these Plans?
Most professional organizations require that you possess a minimum amount of coverage. Most commonly you will be expected to provide proof of coverage for errors and omission along with legal liability to replace goods lost under your watch. Most plans cover these minimum pieces.
What Additional Coverage Should You Consider?
Basic traditional plans allow you to fulfill minimum legal requirements, but the risks are extensive, and you want to make sure that you are fully covered. It is in your best interest to look for plans that also cover the following
- Quota Merchandise
- Misdirected Freight
- Improper Merchandise Release
In the transport industry, a lot can go wrong when dealing with an intricate supply chain, and there is a significant amount of money at stake. Finding yourself liable for lost or stolen goods can end badly, so protect your self by completing research on cargo insurance programs.