Freight Forwarders Legal Liability Insurance or Errors and Omissions for Freight Forwarders with LMBF

Freight forwarders’ main operations revolve around the shipping, management, and transportation of goods and products through carriers via sea, air, rail, or road. Freight forwarders liability insurance is designed as a solution for these carriers against accidental damages or losses to the cargo being transported. If a third party should file a liability claim against your freight forwarding company, your coverage will offer financial protection against the resulting expenses, such as legal fees, judgment awards, settlement fees, and more. LMBF can get you started today with a free freight forwarder insurance quote. All you need to do is tell us a bit about what you do and apply online!

What Freight Forwarders Liability Insurance Coverage Offers

Third Party Liabilities

Third Party Liabilities

In the event that something should happen to the goods your company is transporting and a third party files a liability claim against you for their losses, your freight forwarders legal liability insurance may offer you coverage for mitigation costs, legal expenses, and more.

Maintenance Costs

Maintenance Costs

Your freight forwarder liability insurance may include coverage to repair or recover any lost units during the shipping or transport process, in addition to any necessary maintenance expenses.

Damage or Losses

Damage or Losses

Your freight forwarder liability insurance includes damage or loss to cargo during transit, whether the cargo is being transported by sea, by air, by rail, or by road. It may also cover costs that result from shipment delays as well as uncollected or abandoned cargo.

  What freight forwarders liability insurance cover
  • Damages or loss of cargo during transit
  • Third-party liability expenses
  • Uncollected cargo
  • Business services interrupted by natural calamities
  • Lost units and damage repairs
  What freight forwarders liability insurance does not cover
  • Intentional actions or damages
  • Shipping or transport of illegal goods
  • Undocumented income
  • Wear and tear damages
  • Maintenance issues

What is freight forwarders liability insurance?

Any company that deals in the coordination or handling of goods’ shipment via sea, air, rail, or road may be referred to as a “freight forwarder.” These companies face the risk of being held liable for accidental damages or losses to the cargo before it is delivered to the client. As such, freight forwarders liability insurance is a coverage package designed to provide financial coverage to these companies from claims made against them by third-parties for lost, damaged, or even delayed shipments.

Freight Forwarders Legal Liability Insurance for These Enterprises

LMBF can cover a wide range of freight forwarding enterprises and professionals, including freight forwarders, haulage companies, warehouseman keepers, transport operators and multimodal transport operators, non-vessel operating common carriers, and more. Freight forwarders liability insurance is specifically designed to protect the freight forwarders, i.e the companies that handle and manage the shipment of goods and products via rail, sea, air, and road. See below for some examples of the various business sectors and individual enterprises that may benefit from freight forwarders liability insurance coverage.
Transportation Industry


  • Airlines
  • Freight road transportation
  • Courier companies
  • Railways
  • Trucking companies
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Our Freight Forwarder Liability Insurance Partners

Freight forwarder liability insurance protects a company’s liability if they are held responsible for damages or losses to goods before it is handed over. Freight forwarders deserve the protection best fitted to them, the business they operate, and the type of cargo they ship and coordinate. LMBF partners with only the best freight forward liability insurance carriers in Canada to help freight forwarding enterprises get the coverage they need to conduct their business with peace of mind.

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Looking to Purchase Freight Forwarder Liability Insurance for Your Enterprise? Get Started With a Free Freight Forwarder Insurance Quote Below.

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Freight Forwarder Liability Insurance Coverage: Some Frequently Asked Questions

A: LMBF can help you filter through your options, but some things to keep in mind when selecting a policy are: your specific requirements (details about the types of shipments you do and the risks involved, customs duties, etc.), policy exclusions, the amount of coverage you may need, where you ship to, and so on. If you have any doubts, don’t hesitate to come to LMBF.

A: The cost of freight forwarders liability insurance will vary by provider but you can expect that your premiums will be based upon the size of your business, what you regularly ship, where you ship to and if you ship internationally, customs duties, subcontractors involved, the value of the goods being shipped, and so on.

A: Freight and cargo insurance offer similar coverage but differ in who they protect. If your business acts as the freight forwarder/carrier, it will require freight insurance. However, as a manufacturer or seller (i.e, who is sending the goods) you will need cargo insurance. The main objective of both these policies is to protect the company from any liability that may result from financial loss.

A: Freight forwarders liability insurance may also be referred to as freight forwarders errors and omissions and is generally designed to provide coverage for freight forwarding companies or load brokers for their liability in the physical damage or loss of customers’ cargo. Errors and omissions insurance is designed to cover liability for losses as a result of a failure to perform contractual obligations.

A: It depends on the provider, but you may need to check the wording of your policy as your provider could limit geographical coverage for countries where local legislation decrees that insurance must be exclusively local or where trade is subject to international sanctions. If you are unsure, discuss the limitations of your policy with your insurance carrier.

A: It isn’t mandatory to carry freight forwarders legal liability insurance in most regions of the world but freight forwarders everywhere are encouraged to carry this type of coverage to protect their enterprise against liabilities that may arise from situations where their negligence or error leads to lost or damaged goods. Moreover, clients may prefer to work with insured carriers.