procedures insurance

Procedures in Insurance

Liability insurance for freight forwarders

Many traders use the freight forwarder company to run out insurance. It simplifies procedures, since these companies provide all transportation services that goods need: booking the pick up of goods, packaging, storage and customs clearance.
Freight forwarders typically have limited liability for all claims for loss or damage during the shipment. When other parties (such as transmission lines, airlines or trucks operators) are involved in a dispute, they come into contact with the insurance to settle disputes.
It is often difficult to prove that the responsibility of an accident is due to the shipping company itself (the responsibility is usually due to a link in the transport chain).


Advise the freight forwarder

You must provide clear instructions to the shipping company, including your general conditions of sale and delivery. Communicate if you need special insurance because your goods are subject to special or unusual risks, such as temperature-controlled products that require special trade clauses.


If you are not satisfied with the service provided by the agent, you may be reluctant to pay. However, be aware that they may have a privilege – which is a right to keep your property until they receive payment -. A freight forwarder who takes this action must inform the insurer of each responsibilities and ensure your property retention of your property in all cases.

Get cargo insurance

There are many channels to get an insurance:

– A specialist insurance broker
– A general insurance company
– Freight forwarder company
– Your bank
– Your Local Chamber of Commerce

We strongly advise you to do an analysis of different providers if your goods are unusual. You will also need to decide the form of subscribed contract. This usually depends on your business activity and the nature of your goods.

coverage shipping

Insurance contract

The insurance contract can link the two parties during a specified period. Alternatively, it may cover items up to an agreed value. You pay an annual package based on an initial deposit and make a final adjustment based on the declared value of your exportation/importation.
A contract must contain:
– A description of each shipment, the departure and destination points
– The maximum payable in case of disaster
– Information on the method of valuation of goods
– terms and conditions

How to claim ?

In case of damage or loss in transit, the recipient (or buyer) should follow these guidelines:

– Take a thorough inspection of all goods and record the items damaged or missing
– Take all necessary measures to minimize or prevent further damage
– Take note of any expenses incurred before the dispute
– Keep as proof the shipping container, packaging materials, damaged goods and shipping documents
– Contact the insurer (or dealer, if applicable) so that an injury inquiry can be organized

Then, the recipient must send a letter of complaint against the transporter – which should include:

– The company name and (if applicable) tracking number or flight number
– Sea waybill, bill of lading or the number of the air waybill (if applicable)
– Date of arrival
– Description of the cargo
– Container numbers
– The amount claimed

At the same time, the recipient must send details of the request to the insurer (by the seller, if you use Incoterms – CIF or CIP -). It should include:

– Commercial Invoice
– Details of the insurance policy and certificate number
– Bill of lading or number of the air waybill (if applicable)
– Terms and conditions of carriage
– Correspondence with the freight forwarder for loss or damage
– investigation report

A similar procedure should be followed by the seller, if it’s notified in conditions of sale.

Proceedings for a dispute

If your insurers refuse to pay compensation when there is a litigation, you can take action against them.