Freight Forwarders Liability

Freight forwarders provide shipping, transporting, storing, warehousing and logistics services for hundreds of customers’ cargo. Their liability exposure is not only the volume of cargo but also the value of the cargo they handle.

CLAIM SCENARIO

Insured is a freight forwarding company which undertakes the multimodal transportation for a newly built ship’s main engine from Denmark to a shipyard in Turkey. Engine arrives safely at port and insured arranges a land transportation company to haul the engine from the port to shipyard. While on route, the truck goes under an overpass and the versize engine on the flat bed of the truck hits the bottom of the overpass resulting in $200,000 damage.