Freight forwarder’s liability insurance
With freight forwarder’s liability insurance, the company organising the transport can insure the liability arising from the forwarding contract concluded with its client in accordance with the General Terms and Conditions of the Estonian Logistics and Freight Forwarding Association.
Insuring the freight forwarder’s liability
We mitigate the risks so that you, as a forwarding agent, are covered and can focus on business.
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What do we indemnify?
ERGO will indemnify the claims against the forwarding agent in accordance with the contract concluded with the client. If the goods are damaged or lost during transportation and the forwarding agent becomes obligated to compensate the owner of the goods, the insurance company will indemnify the damage in accordance with the General Terms and Conditions of the Estonian Logistics and Freight Forwarding Association, provided that there is forwarding agent’s liability insurance.Rejection of groundless claim
Insurance cover may also be necessary if the forwarding agent is not liable for damage to the goods in accordance with the contract of carriage or forwarding contract. In this case the insurance company will help to refute the claim against the carrier.Policyholder
Freight forwarder’s liability insurance can be taken out by both a legal entity and a self-employed person.What does ERGO freight forwarder’s liability insurance cover?
Loss of goods
Claims arising from the loss of and damage to the goods, for which the forwarding agent is liable in accordance with the General Terms and Conditions of the Estonian Logistics and Freight Forwarding Association.
Financial losses
Financial losses resulting from damage to goods arising from a forwarding contract, such as a claim for compensation for transport charges or customs duties.
Legal assistance
We will indemnify the expenses incurred to prevent an insured event, reduce damages or repel a claim (legal assistance).
Unavoidable expenses
We will also indemnify the unavoidable expenses for the disposal of cargo and remnants after the insured event, in accordance with the terms and conditions of insurance, if the forwarding agent is liable for indemnifying such expenses.
Late arrival
Liability for damage caused by delay in road transport to the extent provided for in the CMR Convention or the Law of Obligations Act, respectively.
What does ERGO freight forwarder’s liability insurance cover?
Claims arising from the loss of and damage to the goods, for which the forwarding agent is liable in accordance with the General Terms and Conditions of the Estonian Logistics and Freight Forwarding Association.
Financial losses resulting from damage to goods arising from a forwarding contract, such as a claim for compensation for transport charges or customs duties.
We will indemnify the expenses incurred to prevent an insured event, reduce damages or repel a claim (legal assistance).
We will also indemnify the unavoidable expenses for the disposal of cargo and remnants after the insured event, in accordance with the terms and conditions of insurance, if the forwarding agent is liable for indemnifying such expenses.
Liability for damage caused by delay in road transport to the extent provided for in the CMR Convention or the Law of Obligations Act, respectively.
Additional covers offered
In addition to basic covers, it is also possible to supplement your insurance cover with additional covers.
Warehouse keeper’s liability
Responsibility as a warehouse keeper in accordance with the ELFA General Terms and Conditions for Storage.
Third party liability
Liability before a third party arising from damage to the property of a third party in connection with the goods being transported.
Gross negligence
Indemnification for damages caused by gross negligence.
Cabotage transport
The liability of the forwarding agent in the organisation of cabotage transport operations in accordance with local law.
Air freight
The liability of the forwarding agent in the performance of air transport operations in accordance with the Air Waybill, e.g., to the extent specified in the Montreal or Warsaw Conventions.
Additional covers offered
In addition to basic covers, it is also possible to supplement your insurance cover with additional covers.
Responsibility as a warehouse keeper in accordance with the ELFA General Terms and Conditions for Storage.
Liability before a third party arising from damage to the property of a third party in connection with the goods being transported.
Indemnification for damages caused by gross negligence.
The liability of the forwarding agent in the organisation of cabotage transport operations in accordance with local law.
The liability of the forwarding agent in the performance of air transport operations in accordance with the Air Waybill, e.g., to the extent specified in the Montreal or Warsaw Conventions.
Good to know / FAQ
Yes, it is. If the cargo insurer indemnifies the owner of the goods, the insurance company still retains the right to file a claim for refund against the forwarding agent to the extent of the indemnity.
Yes, it is. The forwarding agent may negligently fail to give some instructions to the carrier, which release the carrier from liability, but the forwarding agent will still be liable. There are also cases of fraud where the goods are handed over to a carrier who does not actually exist or who cannot be caught after the incident. Also, whether the carrier is liable and to what extent, is very often disputed. The carrier or their insurer may find that the carrier is not to blame for the damage caused, which does not help much in objecting to the claim made to the forwarding agent.
The liability of the forwarding agent is limited, and the forwarding agent is liable to the same extent as provided for in the legislation limiting the liability of the carrier of the respective mode of transport. For example, in the case of road freight forwarding, the forwarding agent is liable to the same extent as established in the CMR Convention on the liability of the carrier of road transport.
Yes, as part of forwarding agent’s liability insurance, we also offer cover against liability as a warehouse keeper in accordance with the General Terms and Conditions for Storage of the Estonian Logistics and Freight Forwarding Association. However, as these general terms and conditions are relatively limited for the owners of goods, we still recommend that you additionally insure the goods in stock and, if possible, also conclude a liability insurance contract with higher insurance cover.
Yes, it can, but we still enter into two insurance contracts to mitigate the risks associated with the liability of forwarding agent, on the one hand, and of the carrier, on the other hand.
