By Richard Kamppari Baker, Claims Director, World Insurance
In the fast-moving and high-stakes world of air freight, the question often arises: Is Forwarder Protect insurance essential? Many air forwarders assume that airlines bear most risk, but this is a risky misconception. When things go wrong, shipping protection tailored to forwarders becomes essential.
Why Forwarders Still Need Protection
While airlines are responsible for cargo during flight, the freight forwarder often becomes the first target when disputes or incidents arise. Delays, misrouting, customs penalties, or cargo damage can result in significant financial losses, and the forwarder typically handles the fallout.
Real Cases Where Forwarder Protect Saved the Day
Behind every shipment is a chain of accountability, and when things go wrong, forwarders are often the first in the firing line. While many assume that liability rests with the airline, the reality is more complex.
Aorwarder Protect has repeatedly proven its value by stepping in during some of the most challenging logistics disputes, as a tailored shipping protection
The following real-world cases highlight how this specialised coverage has safeguarded forwarders from significant financial loss, legal entanglements, and reputational damage, such as:
1. Wrong Destination Claim
A simple clerical error led to cargo being flown to London, Canada, instead of London, UK. The forwarder had to cover the re-shipment cost, which was over USD 20,000. This entire amount was covered under Forwarder Protect, which offers critical shipping protection.
2. Customs Fines
An employee’s error delayed cargo clearance in South Africa, resulting in a fine. Insurers paid the fine and handled the delayed claim, demonstrating the value of having legal and financial backing.
3. Cargo Damage
In one notable case, a USD 50,000 food shipment deteriorated while Lufthansa failed to respond to a timely claim. Rather than waiting, the forwarder was sued. With Forwarder Protect, legal counsel was appointed immediately, and the claim was resolved while a recovery action was pursued against the airline.
The Role of Azure Risk and Forwarder Protect
Azure Risk, a trusted insurance provider for logistics professionals, offers bespoke Forwarder Protect coverage for freight forwarders.
Unlike standard cargo insurance, Forwarder Protect covers a wide array of liabilities, including customs fines, documentation errors, uncleared cargo, or damage to third-party property, arising not from the cargo owner but from operational risks and carrier disputes.
This form of shipping protection not only provides defence from the ground up (where all legal fees are covered even if no payout is made), but also ensures you are shielded from high-value claims that are increasingly common in the air freight industry.
See how Forwarder Protect can safeguard your operations.
Why Forwarder Protect Is Critical in 2025
With the growing complexity of international trade, rising cargo values, and mounting regulatory pressures, forwarders now bear more responsibility than ever. Airlines are also less responsive in resolving claims, and service contracts tend to shift liability toward the forwarder. In this environment, shipping protection is not a luxury but a necessity.
Azure Risk’s FoRisk Protect solution has supported claims from as low as USD 2,500 to over USD 1 million. This cover has sometimes prevented businesses from financial collapse or reputational damage, especially when dealing with airlines‘ claims due to leakage, explosions, or packing errors.
Protect Your Business Before It Is Too Late
If you are a freight forwarder operating in air cargo, do not wait for a claim to realise the value of proper shipping protection. With Azure Risk and our freight forwarders’ insurance, you get more than just coverage; you get a partner committed to defending your operations, reputation, and bottom line.
Visit Azure Risk to learn more or speak to one of our experts about the risks you face today
