Protecting Freight Using Cargo Liability Insurance Programs

If your client is in the business of acting as a freight forwarder, property broker, warehouse operator, or other type of intermediary, you understand that they are responsible for the goods of others. For them, this can be a rewarding experience when the job goes well, but things can quite easily become a nightmare due to any number of unanticipated issues that may arise.


Marine transporters have a significant responsibility for ensuring the safe arrival of goods belonging to their clients that are being transported in containers from one location to another, either via ships or other cargo vessels. Goods in transit, simply due to the nature of the waterways, are always at risk of being lost, stolen or damaged. Cargo may be lost at sea due to a minor incident or a major accident, as well as because of improper loading, or at times due to unexpected weather conditions.


Cargo insurance protects intermediaries facing claims


Cargo liability insurance programs are the best and really the only way to deal with issues of this nature. In addition, if material goods or products are damaged while being offloaded at a port (for instance, damage could occur due to the use of big cranes), this policy will aid your client during the claims process. Because of the risk involved, it is always advisable for the owners of these goods to buy marine cargo insurance whenever having their goods transported over waterways.


Companies offering coverage have varying types of insurance policies according to the specific needs of the buyer. Over-sized cargo presents its own set of challenges to traditional insurers that may be unfamiliar with these unique shipments, a good reason to partner with someone that often deals in coverage of this type, including everything from high-valued to over-sized cargo shipments, to cargo travelling to high-risk destinations.


In addition, warehouse operators have their own legal responsibility for cargo lost or damaged while in their care, custody or control. The amount of exposure varies depending on the terms of the warehouse receipt. Bailee, or warehouse legal liability coverage will pay to defend the warehouse man and pay settlements rendered in the event of a claim.


As an agent, you should discuss the precise needs of individual clients in order to determine exactly which cargo liability insurance programs will best fit their needs and protect those precious goods from any and all sorts of possible damage.



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