Logistic Providers

Logistic Providers

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When exercising a contract freight forwarder is responsible for safety of cargo from time of its loading until discharge. But defaults or failures may occur at any stage of transportation due to lack of due diligence of its own employees or subcontractors. Forwarders are exposed to the risk of liability for such defaults resulted in loss of or damage to cargo being transported. Very often it is impossible or economically not feasible to obtain recovery of damages from actual carrier or warehouse that may be proved to be ultimate responsible party.
Insurance coverage for such risks is essential to forwarding and logistic companies involved in cargo transportation under various customs regimes. 

Scope of cover:
AMT offers coverage against claims made by third parties for:
  • loss of life, bodily injury or property damage
  • physical loss of or damage to cargo 
  • reasonable salvage expenses incurred 
Factors for risk assessment:
  • quality of risk management
  • actual carriers contracted 
  • type of cargo, turnover
  • trading territories
  • loss record
Scope of cover: 
  • third party loss of life, bodily injury and property damage
  • loss of or damage to cargo
  • damage to environment
  • reasonable salvage expenses
Criteria for risk assessment:
  • quality of company management
  • turnover, routes, traffic volume
  • truck fleet
  • type of cargo
  • loss record