Freight Forwarders Liability Insurance

• Loss of or damage to cargo you are legally liable for, including when you act as principal and issue your own house bill of lading or house air waybill
• Errors and omissions: financial loss from administrative mistakes such as incorrect routing, misdirected cargo or errors on customs entries
• Fines and penalties: comprehensive policies can include customs liability for unexpected duties, taxes and penalties levied by the Australian Border Force because of administrative errors
• Legal defence costs for claims made against your business

Yes. As an agent, you arrange transport and liability rests with the actual carrier. As a principal, which is common in LCL consolidations, you issue your own transport documents, so the cargo owner treats you as the carrier and your policy must respond to the claim first.

Trading under the AFIF (Australian Federation of International Forwarders) standard trading conditions contractually limits your liability, and insurers typically require it as a condition of cover. Accepting consignments without these terms can expose you to unlimited common law liability and may lead to a denied claim.

Your clients can insure their goods under cargo and transit insurance, and if you run your own trucks see carriers insurance. To notify a claim, use our claims page or call 1800 656 836.

Standard policies typically exclude financial loss from delay unless you add a delay in transit extension, warehouse storage risks unless a warehouseman’s liability extension is included, and cyber losses, which need a standalone cyber liability policy.

A quick quote gives you an indicative premium from a few essentials about your business. An accurate formal quote is a full application covering your turnover, services, trading conditions and claims history, so the insurer can offer firm terms. Start with a quick quote if you are comparing options.

Typically your annual turnover split by air, sea and road, the services you provide (such as customs broking, warehousing or transport), the trading conditions you use, the limits of liability you need, and your recent claims history. The more accurate the detail, the sharper the quote.

Customs brokers face particular risks from errors in customs entries and tariff classifications, which can lead to unexpected duties and penalties. A freight forwarders and logistics liability package can include errors and omissions and fines and penalties cover for these services, so tell us if you provide licensed customs broking.

No. Freight forwarders liability insurance is designed for freight forwarders and customs brokers, and can cover loss of or damage to cargo, errors and omissions, fines and penalties, and legal defence costs arising from their services. Carriers insurance is designed for transport operators who are paid to move goods, and typically packages transit, vehicle and liability cover. Businesses that both arrange and carry freight may need elements of both.

Not as cargo insurance. Freight forwarders liability insurance responds to your legal liability as a forwarder, so it may not pay a client whose goods are damaged when you were not legally responsible. Clients who want their goods protected regardless of fault typically need their own transit insurance. Forwarders with an FIS International agent account can quote that cover for clients through the agent portal.