As an International Freight Forwarder you are tasked with many responsibilities in the supply chain process; GSIS can assist you with Risk Management consulting services and with tailored Insurance and Surety products to ensure your operation is in full compliance and your assets are properly protected.
An OTI (Ocean Transportation Intermediary) Bond is required by the Federal Maritime Commission (FMC) to guarantee compliance with the Ocean Shipping Reform Act. There are two forms of OTI bonds, Freight Forwarder and the Non-Vessel Operator Common Carrier.
The Freight Forwarder bond guarantees the Freight Forwarder will carry out all contracts made while acting as an Ocean Freight Forwarder, licensed by the FMC. The bond responds to claims made by shippers and carriers (Ocean, Air & Motor), a judgment is not required for a claim to be paid under this bond.
The Non-Vessel Operator Common Carrier (NVOCC) bond responds to the payment of any judgment for damages against the NVOCC arising from transportation related activities while acting as an NVOCC. This bond also responds to direct fines and penalties assessed by the FMC. Unlike the Freight Forwarder FMC bond, the Surety must have a judgment to pay a claim.
Our Shipper’s Interest coverage allows Freight Forwarders to offer full coverage for their client’s cargo up to 100 percent CIF plus 10 percent value. It is a critical value added service for a Freight Forwarding operation as all International Carriers limit their liability to cargo for as little as $500 per ocean shipment or as little at $9.07 per pound for International air shipments and .50 per pound for domestic air shipments. Shippers Interest also provides coverage for General Average bonds, which can be a significant financial exposure for any Importer or Exporter. Our shipper’s Interest program also minimized the financial risk for freight forwarders to the cargo they arrange transport for. Having a tailored insurance program can be an additional source of value added service and revenue for the freight forwarder.
This policy is designed to cover the financial exposures assumed under a multitude of authorities which a International logistic operation may have in place, including International Freight Forwarding authority, Customs Broker authority, NVOCC authority, Indirect Air Carrier authority, Domestic Freight Forwarding authority, Domestic Freight Broker authority, terminal and warehouse operations, consolidation/deconsolidation services and intermodal transportation services including stack train operations.
A general liability policy with covered Territories of US and Canada is intended to respond to the financial risk International Freight Forwarders can assume as a result of the transportation services they offer.Third party liability can be assumed for fatalities, bodily injury or liability to 3rd party property.This policy is designed to cover the cost of legal defense and any judgments levied against a Freight Forwarder.
Business owner’s policy (BOP) combines many essential property and casualty insurance coverage’s under one policy to protect your company from loss. GSIS will determine the risk your company faces and ensure that the proper coverage is in place to secure your future.