“Penny wise and pound foolish” is an old phrase that means one is careful with small amounts of money, but wasteful with large sums. A good example of this is attempting to save money by not going to the doctor for regular checkups, only to have to pay thousands of dollars later on to cure an illness that could have been resolved easily if it had been addressed sooner. The idea is the same when it comes to freight forward liability coverage, too–simply going for the cheapest policy could leave you out in the cold and your business facing major financial hardship in the event of an incident involving loss of another party’s merchandise that triggers a claim.
What to consider for real protection
Freight forwarders are contractually liable for loss, regardless of who is responsible for causing the loss. For this reason, it is critical to ensure that you have coverage for errors and omissions and legal liability associated with this risk.
The cost of legal defense can be quite expensive. Even if you are not at fault, the expense of defending yourself for an action that is brought against your firm, not to mention the huge amount of time that such cases can take to settle, can be so great that they can cripple your operations. Purchasing coverage that includes coverage for legal defense is an important part of the protective web around your company, on either a “first dollar” or “ground-up” basis which will release you from the obligation of having to pay a deductible or excess for the claim.
Liability exposures extend to many areas, and some companies fall short of protecting themselves by limiting their coverage for their house bills of lading. So if your business includes warehousing, distribution, Make sure you purchase complete coverage for all of your forwarding operations. In fact, not that many insurers offer coverage that includes every sort of protection that is either required or needed for your kind of business. That’s why it’s important to work with a professional insurance agent who can guide you in selecting a comprehensive combination of freight forwarder liability insurance, in the right amounts, for consummate protection. Plus, your agent can secure coverage from a top-rated provider at premiums that are competitively priced. Talk to your agent today to learn more.