International Freight Forwarder Insurance
The Forwarder Shield program was developed by GSIS to respond to the unique needs 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 program also incorporates our Claims and Risk Management Consulting services.
GSIS’s exclusive Forwarder Shield program was designed to simplify the freight forwarders insurance purchasing process. Very few insurance carriers offer insurance for freight forwarders that includes all of the coverage types required for International Freight Forwarding operation. Forwarder Shield coverage is competitively priced and underwritten by an insurance carrier that is rated AM Best, A+ Excellent.
Having the correct freight forwarder insurance coverage in place is just one of many actions companies involved with International Freight Forwarding can take to reduce the financial risk present in their operation. Additionally, we offer a preferred pricing program that gives discounts to qualifying companies. By adhering to our underwriting standards and risk management advice, companies can qualify for our preferred pricing program. The preferred pricing program offers discounts of approximately 30%, better in comparison to other insurers writing insurance for freight forwarders. This program offers the most competitively priced program with the broadest range of insurance coverage 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. Forwarder Shield’s consulting service can evaluate each of the services and authorities, which allows for a complete and thorough risk management strategy and action plan to be put in place.
The nature of the forwarder’s client base, the goods they move and the principal regions of movement are also evaluated. We then design a tailored freight forwarder insurance program that considers all of these factors to address exposures present in any one operation.
Insurance Policies To Consider As An International Freight Forwarder
Shippers Interest Cargo
It is common practice for an International Freight Forwarder to have a Shippers Interest Cargo Insurance program in place. This freight insurance allows the Freight Forwarder to put a broad form of direct physical loss or damage coverage in place for cargo destined for international transit. This type of freight insurance coverage is 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 their client because the Freight Forwarder is 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, the Freight Forwarder is protected from recovery actions/subrogation claims by the insurance carrier. Because the Freight Forwarder is 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 who 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 the Freight Forward to the Freight Forwarder’s 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 and offering this service actually becomes another profit center for many International freight forwarders.
Cargo Legal, Errors and Omissions and Third Party Liability
These insurance policies protect an International freight forwarders asset 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 against these claims.
Our Cargo Legal coverage is intended to respond to each of the covered services for the cargo you transport. Without this insurance for Freight Forwarders a firm 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 even 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 hired by the Freight Forwarder. These types of situations can result in legal liability on the part of the Freight Forwarder. The best course of action for the Freight Forwarder is to have a third-party liability policy in place, which will protect them 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 offers worldwide coverage.
Contingent Auto Liability
A contingent auto liability policy can protect freight forwarding operations against the liabilities caused by contract workers. Many times third-party truckers are 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 killed. The freight forwarding operation can be held legally liable in these cases.
Our contingent auto policy assists the freight forwarding organization with defense costs and, in cases of loss, the judgments you are held liable for. In addition, our consulting services can help to deter or avoid major judgments that 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 made in this area.
A General Liability policy is meant to protect against the liability and associated financial risk Freight Forwarders assume as part of their 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 the Freight Forwarder, within the covered territories of the United States and Canada.
Business Owners Policy Insurance (BOP)
Business Owner’s Policy (BOP) Insurance protects your organization from losses by combining many types of essential property and casualty insurance coverage within one policy. GSIS can work with your organization to determine the level of risk your company faces and ensure that the proper insurance coverage is in place for the freight forwarder.