Freight brokers play an invaluable role in international commerce. To get goods to customers around the globe, manufacturers rely on shippers. Freight brokers negotiate the logistics of getting goods onto ships and across oceans. If something goes wrong, these brokers often find themselves the targets of costly requests for value reimbursement. To manage risk, then, diligent freight brokers opt for contingent cargo liability coverage.
Heightened Shipping Risks
When goods travel across the sea, they face hazards that those traveling on the road simply can avoid. Severe storms often require crewmembers to jettison goods to steady the ship. Alternatively, tight schedules might encourage crews to roughly handle products, inadvertently damaging them. Either way, harm to manufactured goods can be costly for freight brokers.
Enhanced Insurance Coverage
While many shippers carry their own insurance, it often is inadequate to protect a freight broker from liability due to loss of goods. Contingent cargo liability coverage supplements shipper insurance to cover loss of cargo. For manufacturers that rely on ships to get their goods to customers, working with a freight broker that opts for this coverage is essential. Specifically, they demand the following types of coverage:
- High-Value Cargo
- On-Deck Coverage
- Project Cargo
Since state law does not cover cargo insurance, policies can vary widely. Thus, to be certain they are getting the right protection, smart freight brokers work with experienced insurance providers. By carefully analyzing policies and anticipating needs, skilled insurance providers help freight brokers effectively manage risk.