A freight forwarder who arranges for movement of customers’ freight may mistakenly believe he is not exposed to claims alleging damage to that freight if he does not physically handle it. This is not the case, however. If a bill of lading is issued in your name (such as an NVOCC or house air waybill) or if you occasionally hold freight at your office for short periods of time, you can be held liable for damage.

Operating a warehouse and performing local cartage services creates a legal responsibility for the cargo while it is in your custody. Limitations of liability written into your warehouse receipt or bill of lading do not apply if a value is declared on the bill of lading and may, in fact, be overturned under some circumstances.

We can provide you with protection broad, including for:

• Domestic Forwarders - Domestic freight forwarders issue bills of lading for their shipments and are designated as common carriers (non asset-based) by the Federal Motor Carrier Safety Administration (FMCSA). Since the contract of carriage (bill of lading) is between the domestic forwarder and the cargo owner, the domestic forwarder will be first in line for any claims for cargo loss/damage. In essence, this insurance is very similar to an asset-based common carrier’s Motor Truck Cargo insurance policy, and Yantarex Insur Group Trade offers it to our domestic common carrier clients. The policy will defend you against all allegations, and pay claims where you are found to be negligent.

• Indirect Air Carriers - hen acting as an indirect air carrier, the transportation intermediary issues a house air waybill, which presumably stipulates limited levels of liability for cargo loss or damage based on the governing international airfreight treaty or applicable statutory law. If cargo is lost or damaged during transit under your house air waybill, your company is first in line for claims. Bill of Lading Legal Liability insurance will pay the cost of the legal defense in addition for the cost of the ultimate settlement per the policy terms if your company is found liable.

• NVOCC (Non-Vessel Operating Common Carriers) - have a legal liability for cargo loss or damage as prescribed by the Carriage of Goods by Sea Act (COGSA). This liability is fixed at $500 USD per customary shipping unit; however, this is a somewhat vague and contentious term. If cargo is lost or damaged while moving under your house bill of lading, your company is first in line for claims. This insurance will pay the cost of the legal defense, and any indemnities based on your negligence.

Asset-based truckers issue bills of lading and are designated as common carriers by the Federal Motor Carrier Safety Administration (FMCSA). Since the contract of carriage (bill of lading) is between the trucker and the cargo owner, the trucker will be first in line for any claims for cargo loss or damage. The FMCSA no longer requires that all common carriers maintain a Motor Cargo Legal Liability insurance policy with a minimum limit of liability; however, most carriers maintain at least $100,000 USD for commercial reasons.

Yantarex Insur Group will help protect your company should merchandise get damaged while on the road to delivery. Motor Truck Cargo Legal Liability insurance policies may be written to include debris removal, pollutant cleanup or removal, and other features. In addition, the insurance companies with which we partner are known for their reputation of fairness, integrity and responsiveness in handling claims.

Warehouse operators are exposed to the risks of fire, theft and damage of third-party owned cargo stored in their facilities. What’s more, you have a legal responsibility for cargo loss or damage while in your care, custody or control. In fact, under the United States Uniform Commercial Code (UCC), when you create a bailment situation you legally assume liabilities.

Warehouse Legal Liability insurance will defend your company against claims and pay settlements rendered against your company per the policy terms. But not all policies are the same from one insurance company to another and require the expertise of a professional that understands bailment liability. At Yantarex Insur Group, our staff will analyze your specific exposures to determine what you need. What’s more, we can combine this coverage with motor truck cargo, marine cargo and property and liability coverages.

When storing or handling goods without issuing a document that defines your bailee liability, you have a potential exposure to full value liability for cargo loss or damage. Since this liability is not limited, Bailee insurance is required. The policy responds to physical loss or damage of property in your care, custody or control, without regard of negligence.

When purchasing a Bailee insurance policy, be sure to work with a professional that specializes in this area. Not all policies provide the same coverage. For example, defense costs are often a substantial expense incurred by a bailee when presented with a claim for loss or damage. They can easily exceed the monetary amount of damages. At Yantarex Insur Group, one of our advisors will review your policy and determine whether defense costs are part of your coverage and up to what amount. Also, as a bailee you may also be responsible for debris removal, which is the cost to have damaged property contained, removed from the storage premises and properly disposed. A Yantarex Insur Group advisor will review this with you and determine what you currently have and what you need included in your specific insurance program.

Packers’ Legal Liability insurance covers damage to cargo in transit subsequent to the packer’s handling of the goods. If the damage occurs as a result of improper packing, loading, blocking/bracing, crating, wrapping, etc., the cargo owner (or their insurer) may have recourse against the packer who prepared the goods for shipment.

Additionally, this insurance will provide for the cost of the packer’s legal defense as well as any settlements per the terms of the policy that are ultimately awarded to the claimant.

Yantarex Insur Group can customize your overall insurance solution to include Packers’ Legal Liability, along with several other important coverages: Bill of Lading Legal Liability, Domestic Forwarding Legal Liability, Errors & Omissions, Motor Truck Cargo Legal Liability, Contingent Motor Cargo Legal Liability, Warehouse Legal Liability, Bailee, Contingent Auto Liability, among other coverage features if needed. We have the flexibility to create a program specific to your needs in addition to market access to provide a competitively priced solution for you.

When acting as a property broker, the contract of carriage (bill of lading) is issued directly from the underlying asset-based carrier to the cargo owner. As such, the asset-based carrier is first in line for cargo loss and damage claims. Unfortunately, it is not uncommon for the carrier’s motor truck cargo policy to fail to pay a claim for various reasons. In this event, the cargo owner will often file against a property broker in an effort to collect on their claim. This is why as a property broker, you can benefit from securing a Contingent Cargo Liability policy, which will defend against the claim and pay settlements per the terms of the policy if ultimately ruled against your company.

Yantarex Insur Group can provide you with a Contingent Cargo Liability policy to protect against the liability you assume when making arrangements to move cargo for others. Coverage varies depending on the insurer so it’s wise to work with a specialist such as Yantarex Insur Group. Our staff has the expertise to determine the right policy and coverage for your needs.

FDA legislation imposes financial liability upon a U.S. agent for fees charged by the government agency to re-inspect foreign facilities that manufacture or process goods to be imported into the United States. Re-inspection is ordered when the initial inspection results in deficiencies, which compromises the safety of the imported products. As a result, customs brokers and freight forwarders acting as designated U.S. agents are now exposed to financial loss should they not recover re-inspection fees from their client/foreign facility.

FDA Re-inspection Fee Coverage is available to provide you with coverage in the event the foreign facility fails to pay all re-inspection fees required by the FDA, and you as the U.S. agent are liable for such fees. Yantarex Insur Group can provide you with this coverage.