Freight Forwarders Insurance

Why choose Howden for your Freight Forwarders Liability Insurance?

Howden is the new name for Primo.

Finding the right liability insurance for your freight forwarding business can be challenging, but Howden makes it more accessible. With access to a vast network of leading insurers specialising in logistics, we can quickly source and compare policies, helping you find the best protection for your business. We aim to simplify the process, allowing you to concentrate on the efficient movement of goods rather than the intricacies of insurance.

We understand that no two freight forwarders operate the same way, so we offer a customised approach. Whether you need extensive coverage for multiple transport modes or a more specific policy for international freight, we work closely with you to design a solution that aligns with your particular risks and operations.

At Howden, we’re dedicated to supporting your business at every stage—whether you're arranging new cover, renewing a policy, or dealing with a claim. We focus on giving you confidence so you can keep delivering excellent service to your clients, knowing that your insurance is in capable hands.

Benefits of working with Howden:

• You can trust us – we’re rated Excellent on Trustpilot.
• Our brokers are well-versed in the nuances of the karting industry.
• We'll work with you to create a bespoke insurance package that meets your unique needs and budget.
• We leverage our relationships with top UK insurers to secure the best rates for our clients.
• Our dedicated team is committed to providing exceptional service.

What is Freight Forwarders Liability Insurance?

Freight liability insurance is a critical protection for businesses in the logistics sector, including UK carriers and bailees, such as hauliers, couriers, freight forwarders, and warehouse owners. This type of insurance covers your business against loss or damage to your clients' goods while in your care, custody, or control, and ensures that you are financially protected should a claim arise. Given the complex nature of modern supply chains, the need for comprehensive freight liability insurance has never been greater.

For businesses involved in transporting, storing, or handling goods, the risk of being held liable for damages or losses is ever-present. These risks could arise from a range of incidents, from accidents during transit to unforeseen issues such as theft, fire, or natural disasters.

Freight liability insurance ensures that, in the event of such incidents, your business does not bear the full financial burden of compensating for lost or damaged goods. This is particularly important for businesses that handle high-value goods or operate in industries with tight margins, where a single claim could have significant financial implications.

How does Freight Forwarders Liability Insurance work?

Freight Forwarders' Liability Insurance is designed to protect businesses involved in the logistics of transporting goods from one location to another. As a freight forwarder, your responsibility is to ensure the safe transit of goods, whether by road, rail, sea, or air. However, during the course of your operations, you may become liable for various types of loss or damage to cargo. This could result from negligent handling, improper storage, or damage that occurs while the goods are in transit.

Freight forwarders’ liability insurance provides coverage for these liabilities, ensuring that any claims made against your business for loss or damage to cargo can be dealt with without putting your company’s financial stability at risk. This type of policy is typically tailored to cover specific risks associated with logistics operations, including:

• Accidental damage to goods in transit, which may occur due to collisions, mishandling, or other unforeseen events.
• Loss of goods while in your care, whether due to theft, fire, or natural disasters.
• Legal liability for failing to meet contractual obligations in relation to the safe delivery of goods.
• Costs associated with delay in delivery or failure to meet specific delivery deadlines (depending on the terms of the policy).

By obtaining freight forwarders’ liability insurance, you protect your business against the potential for significant claims, ensuring that you can continue to operate without disruption in the event of an incident. Policies are typically customised to meet the specific needs of your business, whether you focus on national or international freight, or handle goods by sea, land, or air.

How does Freight Forwarders' Liability Insurance differ from Marine Cargo Insurance?

One of the most common areas of confusion within the logistics sector is the distinction between freight forwarders’ liability insurance and marine cargo insurance. While both types of insurance relate to the transportation of goods, they serve different purposes and are typically held by different parties within the supply chain.

Marine cargo insurance is generally obtained by the owner of the cargo and is designed to protect the goods themselves against physical loss or damage during transit, particularly when transported by sea. It covers risks such as theft, damage due to weather conditions, and sinking or capsizing of the vessel. Marine cargo insurance is essentially a "first-party" insurance policy, protecting the goods owner’s financial interest in the cargo.

In contrast, freight forwarders’ liability insurance is a "third-party" insurance policy. It is held by the freight forwarder or logistics provider to cover their liability in case the goods under their care are lost or damaged due to negligence or unforeseen circumstances. The forwarder does not typically own the goods but is responsible for their safe transit and delivery. This type of insurance provides coverage for the liabilities that may arise as a result of contractual obligations or general liability law.

It is important to note that while some freight forwarders’ liability policies may include limited coverage for cargo, this is usually secondary to the main focus of the policy: protecting the freight forwarder from liabilities. Cargo owners should still have their own marine cargo insurance to ensure comprehensive coverage of their goods. At Howden, our team can help you navigate these complexities and ensure that your business is adequately covered in all areas.

The Importance of Freight Liability Insurance for Logistics Businesses

Logistics businesses, including freight forwarders, haulage contractors, and warehousekeepers, operate in a sector where risks are ever-present. From potential accidents during transport to risks associated with handling and storage, these businesses must be prepared for any eventuality. Freight liability insurance provides crucial protection, ensuring that businesses are not left financially vulnerable when things go wrong.

For example, a haulier transporting goods across the UK may encounter accidents due to poor weather conditions or road hazards, leading to damage or loss of goods. Without freight liability insurance, the haulier may be required to cover the cost of replacing the damaged goods, resulting in significant financial strain. Similarly, warehouse keepers could face claims if stored goods are damaged due to fire, flooding, or mishandling.

Freight liability insurance not only provides coverage for direct losses but also helps safeguard your business’s reputation. In the competitive logistics industry, clients need assurance that their goods are in safe hands. By having comprehensive insurance in place, you demonstrate a commitment to professionalism and reliability, enhancing your business’s credibility in the marketplace.

Understanding Policy Variations and Exclusions

Not all freight liability insurance policies are created equal. There can be significant variations between policies, particularly in terms of exclusions and the extent of coverage. It is crucial to understand these variations to ensure that you are not left exposed in the event of a claim.

Common exclusions in freight liability policies may include:

• Acts of terrorism or war, which may not be covered under standard policies.
• Insufficient packaging or failure to adhere to packaging standards, which can invalidate claims related to damage.
• Losses related to deliberate misconduct by employees or contractors.
• Certain high-value or hazardous goods, which may require additional specialised coverage.

At Howden, we work closely with a range of insurers to ensure that you receive a policy tailored to your specific business needs. Our experienced brokers take the time to understand the unique risks associated with your operations and find solutions that provide comprehensive coverage, ensuring peace of mind for both you and your clients.

Contact Howden today to speak to one of our expert brokers and discover how we can help protect your business with freight liability insurance.