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16 Oct Does Your Freight Forwarding Business Have Liability Coverage?
Every step of cargo’s journey should be insured, and any damage found at the freight’s destination could result in a claim against your policy. Having an insurance policy that specifically addresses the risks you and your company face as a freight forward can help cover settlement costs and address third-party claims. The next time you look at your insurance coverage for your freight forwarding business, make sure it includes these two elements:
- Do you have general liability coverage? Truck and property insurance can cover the loss or damage of your equipment in many circumstances, but it doesn’t include coverage for any damage or loss to your customers. That’s why having liability coverage, which can help your company cover or address claims about your customers’ or others’ damages is critical. General liability coverage helps insure freight, damaged storage equipment that belongs to third parties, and even damage that is done to the recipient’s property upon delivery.
- Have professional liability coverage for when you offer expertise or advice. Whether you’re a direct freight forwarder or your company provides third-party logistics, you are responsible for any professional advice or expertise you deliver. No matter what part of the supply chain you focus on, if your customers face losses because of your actions or advice, they can level a claim or lawsuit against your company for errors and omissions. The industry is becoming more and more specialized as companies outsource services to third parties, and that specialization makes coverage essential.
Handling freight or even freight routes in the abstract comes with liabilities, and commercial insurance can protect your company from expensive third-party claims. Go to Evolution Insurance Brokers to find the right coverage for your freight forwarding business.