Freight forwarders insurance, also known as freight liability insurance, is an essential coverage for companies that transport goods and cargo. It protects them from financial losses due to damages, accidents, and other unforeseen incidents that may occur during the transportation process. In this blog post, we will discuss three real-life case studies where companies have successfully claimed freight forwarders insurance. These examples will illustrate the importance of having this coverage and the peace of mind it can provide in the event of a mishap.
Case Study 1: A Shipping Container Goes Missing
Company A, a large import-export company, was shipping a container of valuable goods from Asia to the United States. The container was loaded onto a cargo ship, and everything seemed to be going smoothly. However, when the ship reached its destination, the container was nowhere to be found. After an extensive search, it was determined that the container had been lost at sea.
Company A had purchased freight forwarders insurance, which covered the loss of the container and its contents. The insurance company conducted an investigation and determined that the loss was due to a shipping error, not a deliberate act of theft. As a result, Company A was able to recover the value of the lost goods and continue its operations without any major financial setback.
Case Study 2: A Truck Accident
Company B, a transportation and logistics company, was transporting a load of fragile electronics from a warehouse to a distribution center. Along the way, the truck was involved in a serious accident and the electronics were severely damaged.
Company B had freight forwarders insurance, which covered the damages to the electronics and any losses suffered as a result of the accident. The insurance company paid out the claim and Company B was able to cover the cost of repairs and replacements. They were able to continue with their operations without any major financial setback.
Case Study 3: A Fire in a Warehouse
Company C, a manufacturing company, had a warehouse that stored raw materials and finished products. One night, a fire broke out in the warehouse, causing extensive damages to the building and the contents.
Company C had freight forwarders insurance, which covered the damages to the warehouse and the lost or damaged goods. The insurance company conducted an investigation and determined that the fire was caused by an electrical problem, not arson. As a result, Company C was able to recover the value of the lost or damaged goods and cover the cost of repairs to the warehouse. They were able to continue with their operations without any major financial setback.
In conclusion, these three case studies demonstrate the importance of having freight forwarders insurance. These incidents could have had a devastating impact on the companies involved if they had not been properly insured. Freight forwarders insurance provides financial protection in the event of an accident, loss, or damage, and allows companies to continue their operations without interruption. It is a smart investment for any company that transports goods and cargo.
Considering this policy? We would suggest that you first read about the 5 key points to consider about it.