Most of the information in this section has been taken from "The InternationalFreight Guide" with the kind permission of the British International FreightAssociation.

Why does a shipper need Insurance?
Insurance Terms and the Insured Person's Duties
Insurance in relation to trade terms
Insurance for the freight forwarder/carrier

Why does a shipper need Insurance?

Even a cursory glance at any carrier's liabilities under international transportConventions should make the exporter or importer aware of one fundamentaltruth. There is no guarantee of a recovery against a carrier for loss ordamage to goods, and if a recovery is successfully made it is frequentlynot for the full amount of the loss because the law sets limits on the compensationcarriers are required to pay. Cargo insurance is in these circumstancesat the very least desirable, though many would go further and regard itas indispensable. This cover is only affected by the forwarder followingreceipt of specific instructions in writing from the shipper/owner of thegoods. Similarly, any forwarder reading about carrier's liabilities willbe aware that the forwarder, particularly when acting as a principal, mayincur full liability as a carrier under CMR and Warsaw, and will also haveliabilities for errors and omission. Here it can be categorically statedthat insurance against these liabilities is indispensable, a likely alternativebeing future insolvency. Indeed, it is now a requisite of registered tradingmembership of the British International Freight Association that appropriateand sufficient forwarder's liability insurance cover be maintained by themember.

If you wish us to insure your cargo at extremely competitive ratesthen please contact your local PSL Office, or e-mail us at sales@pslgroup.net

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