Share this:
Freight forwarding involves the transportation, storage and clearing at customs of goods. There is a lot of risks involved for any party in charge of freight forwarding since during the process, the goods are under their care. Sometimes the losses could mean a bad reputation for the business or complete shutdown of the business.
Ideally, freight forwarder insurance offers coverage to freight forwarders, customs brokers, warehouse operators and transport and logistics companies. It can easily be gotten through an insurance broker or an insurance firm.
Here are some of the benefits of freight forwarders insurance:
1. Your Business Is Protected
Some of the risks faced by a business include fire, natural disasters, theft, accidents, spoilage of goods when being handled or when in storage. Sometimes, the business doesn’t do a comprehensive risk assessment or they sometimes miss one risk. This leaves them vulnerable. For most of these, the business is liable to pay or compensate the affected parties. This is what is considered as freight forwards liability. Sometimes, the business might not be in a financial position to cater for all these costs. A forwarders liability ensures that a business does not find itself in such a situation.
2. Avoidance of Legal Liability
A client can decide to sue a company for any damage to goods. Third parties like freight forwarders, customs brokers and warehouse operators can also be sued. An employee can also decide to take the same course of action when injured at work. The litigation comes with additional legal fees, loss of time since it used to settle the dispute, the psychological stress of all parties involved and a general bad image. Having an insurance cover ensures that a business avoids this route and save money and time.
3. Protection of the Supply Chain
Sometimes third parties are involved in the handling of goods. Such third parties include freight forwarders, customs brokers, warehouse operators and transport and logistics companies. Holding them liable for any damages or errors may mean loss of their jobs and loss of time for the company in efforts of trying to find a new one. Freight liability insurance offers cover for all these parties, thus reducing all the inconveniences.
4. Creates a Sense of Professionalism
There is nothing worse than a business simply apologizing to its clients for losses incurred because it cannot afford to offer any sort of compensation. Having a freight forwarders liability insurance creates trust in the clients and maintains the clients because they have confidence that at the end of the day, they will get value for their money. Clients who bring in a lot of business sometimes even as for proof of freight forwarders insurance before going into business with a company.
5. Opens the Door to Investors
Much like how forwarders liability insurance creates trust in the clients, it also creates trust in the investors. Investors are attracted by a business that has its affairs in order and one that can avoid as many legal problems as possible.
6. Reduces Public Relations Costs
Getting insurance eliminates all chances of starting campaigns to rectify the image of a company.
7. It is Pocket-Friendly
Freight forwarders liability insurance is quite affordable since it covers a lot of things at once. There is also no duplication of things covered since it is an integrated policy that minimizes gaps found in other insurance packages. This ensures that the premium payable is at an all-time low. The charges for hiring an insurance broker are also not that high.
Every business owner who enters into the field always wants to ensure the sustainability and continuity of the business. Freight forwards liability puts the business in a vulnerable position and is a direct impediment to its growth. Freight forwarders liability insurance ensures legal compliance, continuity of the business, long term relationships with all parties involved and an opportunity for acquiring funding.