What is Freight Forwarder Liability (FFL)?
Freight Forwarder Liability (FFL) insurance covers the professional and legal liability of freight forwarders and logistics firms towards their clients and third parties for loss of or damage to goods, incorrect or incomplete documents, misdelivery and resulting financial losses.
Although forwarders often do not perform the physical carriage themselves, they can be held liable as a carrier towards their clients when they issue bills of lading or FBLs in their own name or organise the transport. If compensation cannot be recovered from the subcontracted carrier, this liability hits the forwarder's balance sheet directly.
An FFL policy brings together the forwarder's liability as carrier, errors and omissions as organiser, customs and documentary errors and damage to third parties under one roof. Limits are set according to the documents issued, contract terms and FIATA standards.
What is covered?
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Carrier's liability
Liability for loss of, damage to or delay of goods in transport organised by the forwarder.
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Errors and omissions (E&O)
Financial losses from misrouting, failure to follow instructions and operational errors.
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Documentary and customs errors
Fines and losses caused by incorrect or incomplete documents.
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Misdelivery
Delivery of goods to the wrong consignee or without presentation of the bill of lading.
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Third-party liability
Bodily injury and property damage caused to third parties during operations.
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Legal defence
Lawyer and court costs in defending claims.
Optional extensions
- Warehouse keeper's liability
- Container liability (leased containers)
- Customs duties and charges
- Costs of recovery actions against subcontractors
Who is it for?
- Freight forwarders and international transport organisers
- Logistics firms issuing bills of lading or FBLs in their own name
- NVOCCs and consolidators
- Logistics companies also providing customs brokerage
Information needed for a quote
Sharing the following information lets us obtain fast and accurate quotes from several insurers.
- Areas of activity and service types
- Annual turnover and number of files/shipments
- Transport documents issued (FBL, HBL, CMR, etc.)
- Standard trading conditions used
- Claims history for the last 5 years
Frequently asked questions
What is the difference between FFL and CMR insurance?
CMR insurance only covers an international road carrier's liability under CMR. FFL is a broader policy covering the forwarder's liability as carrier and organiser across all modes, documentary errors and financial losses.
I subcontract the carriage. Am I still liable?
If you issued a transport document in your own name or undertook the carriage, you can be held primarily liable towards your client. Where you cannot recover from the subcontractor, the FFL policy covers this risk.
Does an FFL policy insure the goods themselves?
No. FFL is a liability insurance covering the forwarder's legal liability. Cargo insurance can additionally be offered to protect your clients' goods at full value.
Scope of cover and limits are determined by the general and special conditions of the issuing insurer.