Know What Your Contingent Cargo Liability Covers

Know What Your Contingent Cargo Liability Covers

contingent cargo liability

Although it is not required by law, it is expected by those in the shipping industry that freight brokers carry contingent cargo liability. In fact, there are many shippers who won’t do business with a broker who doesn’t have it. If you’re shopping for a contingent cargo policy, here are some issues to consider.

Best Practices Guidelines

Many insurers require freight brokers to follow best practices guidelines that include items such as ensuring transportation carriers provide proof of auto and cargo insurance that is current and paid to date. It’s also a good idea to know which commodities are covered and which are excluded from a contingent cargo liability plan and whether there is a monetary cap on covered commodities. What legal liability is required for the policy to take effect; do you have to be named in a lawsuit or is a valid carrier claim enough for the policy to pay out?

Deadlines for Claims Filing

Are there deadlines that a claim must be filed by? These deadlines should be spelled out in the policy. Are there exclusions for refrigerated cargo such as food items, medical supplies and other types of sensitive goods? It’s always smart to have everything spelled out in writing and to make sure you understand what events are covered. As a freight broker, your shippers are going to want to know about your insurance too.