The Intelligent Insurance Solution for International Freight Forwarders
Forwarder Shield by LOGISTIQ responds to the unique needs – and often changing protocols — of the International Freight Forwarding industry. Forwarder Shield offers tailored International freight forwarder insurance programs designed for specific situations, such as air freight insurance and ocean freight insurance. This resourceful all-in-one program also effectively and efficiently incorporates our claims and risk management consulting services.
Forwarder Shield is designed to clarify and simplify the insurance purchasing process for freight forwarders, especially since few insurance carriers offer insurance that includes all of the coverage types required for International Freight Forwarding operations.
Having the correct freight forwarder insurance coverage in place is just one of many actions International Freight Forwarding companies can take to astutely reduce the financial risk inherent in your operation.
The best news is that Forwarder Shield not only provides you with everything that you need, but that the coverage is competitively priced and underwritten by an insurance carrier that is rated AM Best, A+ Excellent.
We offer a preferred pricing program that gives discounts to qualifying companies. By adhering to our underwriting standards and risk management advice, discerning companies can qualify for our preferred pricing program. The preferred pricing program offers discounts of approximately 30%, significantly better than other insurers writing insurance for freight forwarders. This sharp aspect of Forwarder Shield offers you the most competitively priced program with the broadest range of insurance protection available.
A typical international freight forwarding operation can include a multitude of services and have a variety of authorities in place within the operation. Each one of these services and authorities should be considered and evaluated for the exposure and risk they present. The consulting service that is packaged into your Forwarder Shield program evaluates each of the services and authorities associated with your freight forwarding operation, allowing for you to adopt a smart, complete and thorough risk management strategy and action plan.
Among those aspects considered and evaluated are the nature of your client base, the goods being moved and the principal regions of movement. Your team at LOGISTIQ then designs a tailored freight forwarder insurance program that considers all of these factors in order to deliver the right solution for your business.
It is common practice for an International Freight Forwarder like yourself to have Shippers Interest Cargo insurance. This type of freight insurance allows you as a Freight Forwarder to put in place a broad form of direct physical loss or damage coverage for cargo destined for international transit.
We encourage this as a responsible option because this type of freight insurance coverage is also customer friendly. When a claim is placed, the principal issue is to prove that the cargo did suffer physical loss or damage during the insured transit.
The Shippers Interest insurance program effectively covers both the Freight Forwarder and your client because you become a named insured under the international freight insurance policy. Practically speaking, the client should be indemnified for covered cargo claims. The client is then left with no cause of action against the Freight Forwarder in the case of a loss. Under this freight insurance coverage, you are wisely protected from recovery actions/subrogation claims by the insurance carrier. Because you are a named insured under the policy, the insurance carrier is prevented from making claims against the Freight Forwarder. Furthermore, subrogation claims will be pursued against the actual transportation company that provided the transport and had the cargo in their care, custody and control when the claim occurred.
The premium associated with freight insurance is typically generated by reporting each shipment through a Cargo Insurance website specifically set up for the Freight Forwarder. A rate is established depending on certain factors, such as the distance of transit involved and the method of transportation. The premium associated with the shipment is billed by you to your client and collected along with the freight costs associated with the shipment. Many Freight Forwarders charge a service fee for putting this coverage into effect. Offering this service actually becomes another profit center for many leading International freight forwarders.
Cargo Legal, Errors and Omissions and Third Party Liability
These insurance policies protect an International freight forwarders assets by providing legal defense cost protection as well as coverage for judgments levied against an operation. Many Freight Forwarders fail to insure each and every shipment, opening the door to claims. Cargo Legal, E&O, and third-party liability policies can protect an organization like yours against these claims.
LOGISTIQ Cargo Legal coverage is intended to respond to each of the covered services for the cargo you transport. Without this insurance, a Freight Forwarder can be exposed to lawsuits for cargo damage and theft. Legal costs and judgments against the firm can all be covered under this insurance.
Errors & Omissions
E&O insurance policies are designed to protect a company against lawsuits stemming from errors and omissions associated with the covered services. Many times, liabilities other than damage or theft to cargo can arise. E&O coverage can add protection in these cases.
Third Party Liability
Third parties can be injured or tragically killed as a result of the movement of freight. For example, if a container of hazardous material is damaged in transit and a dock worker subsequently dies from exposure during unloading, the firm can be held legally liable.
Even physical property — such as a warehouse dock — can be damaged as a result of a collision caused by someone you have hired. These types of situations can result in legal liability on your part. The best and most responsible course of action for you as a Freight Forwarder is to have a third-party liability policy in place, which will protect you against lawsuits that stem from these situations.
Third-party liability coverage is similar to general liability insurance in many ways. Unlike general liability insurance policies, however, third-party liability coverage for the Freight Forwarder smartly offers worldwide coverage.
Contingent Auto Liability
Contingent Auto Liability policies can protect freight forwarding operations such as yours against the liabilities caused by contract workers. Third-party truckers are often hired to transport freight for the domestic portion of the international transit. Because accidents can happen in this line of work, these third-party truckers may end up injured or even killed, leaving freight forwarding operations legally liable.
Our LOGISTIQ Contingent Auto Liability policy assists freight forwarding organizations with defense costs and, in cases of loss, the judgments you are held liable for. In addition, our comprehensive consulting services can help to deter or avoid major judgments that in a worst case scenario can put a firm out of business. This area of exposure must be considered by any responsible organization, as judgments in excess of $30 million have been laid down in this area.
General Liability policies for Freight Forwarders are meant to protect against the liability and associated financial risk you assume as part of your services. Third-party liability can be assumed due to fatalities, bodily injury, or damage to third-party property. This policy for the international freight forwarder is intended to assist with the costs of mounting a legal defense and any judgments levied against you as a Freight Forwarder, within the covered territories of the United States and Canada.