12/21/2021
As logistics involves a network of different partners, goods may pass through multiple transfers, different service providers and various modes of transport en route to the end destination. Most of the time, freight is transported by air or sea without issues. However, all transport carries an element of risk – and it’s important to know that your goods are not automatically covered against damage, theft or loss by liability insurance alone. The additional combination of both freight and cargo insurance provides an essential safety net. Due to the complexity, this should be applied for by an experienced partner in logistics.
Liability coverage protects the carrier or freight forwarder, but does not generally cover damaged cargo. The carrier or freight forwarder can only be proven liable if damage or loss occurs through clear mistakes or negligence during transport. The extent of the carrier of freight forwarder’s liability is however limited, and the maximum amount of compensation they are required to pay usually will not equate to the value of the shippers goods or products.