Transportation Companies’ Liability Insurance
The target group are companies registered in Estonia, providing following services: freight forwarding, transportation of goods, assembling and packing the goods etc.
When providing the service, the Transportation company is liable to its client pursuant to the contract for the supply of services. The scope of liability is regulated in different legislation: the Law of Obligations Act, international transport conventions, and other national and international agreements (e.g., CMR Convention, Warsaw Convention, CIM Convention, SMGS Agreement, Hague-Visby or Hamburg Rules).
Insurance offers Transportation companies the possibility to insure the liability arising from the contract for the supply of service. This can be done either by single services or in a complex manner by insuring the services of transport and forwarding of goods in a single contract.
Types of Transportation company liability insurance:
- Road Carrier’s liability insurance
- Freight Forwarder’s liability insurance
- Liability insurance for other transport service providers, such as stevedoring, terminal services, etc.
FREIGHT FORWARDER LIABILITY INSURANCE
insures the civil liability of the freight forwarder in accordance with the general terms and conditions of ELEA. The damages caused by the fault of the freight forwarder (act or omission for which the freight forwarder is responsible) during the loss or transport of the goods shall be indemnified by the insurance company in accordance with the limits of international conventions.
Cargo Insurance
Generally, the cargo owners should always take cargo insurance to protect themselves against potential damages during transportation.
The cargo insurance contract protects the cargo owner against all major risks, for example: traffic accidents, theft, fire, loading damage, natural disasters, etc. This includes protection even in cases not directly under the insurer’s control, such as if a transportation company employee causes damage while intoxicated, etc.
In addition to physical cargo, you can also insure the client’s financial interests related to the transportation of the cargo, which include, for example:
- Direct costs related to the transportation of the cargo (such as freight charges);
- Damages due to delays in the cargo (up to the amount of the freight charges);
- Loss of profit (up to the agreed limit);
- Taxes for which the insurer is responsible (e.g., customs or excise taxes);
- Costs of rescuing or disposing of the cargo;
- The cargo owner’s liability in connection with general average (the interests of ship and cargo owners in saving the ship).
By special agreement, it is also possible to insure:
- Used, unpacked, or damaged cargoes;
- The insurer’s tools, equipment, and samples;
- Exhibit items;
- Pre-transportation or post-transportation storage of the cargo.