Freight forwarders are the one who handle and coordinate the shipment of goods through carriers, by regular liners, sea going vessels, or by air or by train and by road transport. The business activities under freight forwarder can be classified as forwarders, non-vessel operators, common carriers, haulage companies, warehouse keepers, logistics operators, multimodal transport operators etc.

Freight forwarders liability insurance fundamentally provides insurance cover against the legal liability owned by the cargo forwarder to the cargo owner while transporting the cargo from one point to another. The forwarder has strict duty of standard Care and duty to safeguard the interest of the cargo owner to deliver the cargo safely and sound position to the point desired by the cargo owner. But after applying all safety measures yet accidental damages to the cargo cannot be ruled out against the unforeseen sea perils and act of god during the voyage. Freight forwarder liability eases the financial stress on the company and reduces the risks involved.

Cargo is exposed to the unforeseen loss, damage, and destruction, either while handling or transportation by means of sea, by air, and the owner of the cargo has legal right to recover the loss or damage from the freight forwarder.

Freight forwarders legal liability insurance provides for the unforeseen events.

• Physical loss or damage to the carried cargo in the transit.
• Unforeseen custom fines and duties due to an unintentional errors, omissions, or
  negligence.
• Third party liability and defending legal expenses or mitigation of costs including
  debris removal.
• Port Authorities fines for breach of regulation or duties
• Uncollected or abandoned cargo
• Financial claims from Shippers and receivers
• Operational services like distribution, storage, haulage, packaging occurred
  against fire, explosion, and other natural or wet perils.
• Claims defending (legal) cost
• Claims towards personal injury or employee injury during operation
• Damage repair and lost units.