Freight Forwarders Liability Insurance

Customized Solutions For Freight And Logistics

What is Freight Forwarders Liability Insurance?

Freight Forwarders Liability (FFL) Insurance covers Errors & Omissions and Legal Cargo Liability, including a forwarder’s liability, regarding damage or loss of goods when in the care of companies handling logistics for a third party. FFL Insurance and Cargo Insurance are essential in their own right (complement each other) and should not be considered a replacement for each other. The key difference between the two types of insurance relates to who they protect.


Do I need Freight Forwarders Liability Insurance?

If your company coordinates or handles the transport of goods for a third party, you are potentially liable for damage or loss of goods whilst under your care, including during transport (land, sea or air).

We understand the challenges of complex, interconnected risks for freight logistics companies operating locally in Hong Kong and internationally. Freight Forwarders Liability Insurance provides cover for justified claims (depending on policy terms and conditions) and protects the insured against unjustified claims.

If a third party (either a shipper or receiver) makes a claim against you, associated legal and mitigation costs not only take a financial toll on your finances but can also damage your reputation.

Freight forwarders are also subject to unforeseen customs fines or duties due to omissions, human error, delays during transportation and customs holdup. Breach of regulations at port authorities and dealing with abandoned cargo can also require action and financial resources.

Freight Forwarders Liability Insurance protects against these common issues by covering operators across industries, including:

  • Freight forwarding companies
  • Non-vessel operating common carriers
  • Haulage companies
  • Warehouse keepers
  • Logistics operators
  • Multimodal transport operators

Looking for Freight Forwarders Liability Insurance?

What does Freight Forwarders Liability Insurance cover?

FFL Insurance commonly covers the following categories, and can be tailored to the unique requirements of your company:
  • Damage or loss of cargo during transit
  • Customs fines and duties (due to errors and omissions), and delays
  • Third-party liabilities (legal expenses, mitigation costs, debris removal)
  • Port authorities for any breach of regulation or duties
  • Uncollected or abandoned cargo
  • Operational services (distribution, storage, haulage, packaging)
  • Fire, explosion or other accidents
  • Personal or employee injury

We tailor our Freight Forwarders Liability Insurance to meet the needs of Hong Kong and international freight forwarding and logistics clients as they expand their global reach and responsibilities, ensuring their risks are mitigated.

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