Clear Logistics

Clear Logistics

Marine & Logistics Operator Liability Insurance

Similar to other professions, Freight Forwarders are responsible to their customers for the services and the advice they provide. In the event of physical loss or damage to cargo, or resultant financial loss suffered by the cargo owner, the freight forwarder will be required to defend their liability and under certain circumstances reimburse the cargo owner for their loss.

Customs Brokers and Freight Forwarders are more vulnerable than ever to actions brought against them by their clients due to errors made, or errors which the client perceives were made. Mistakes can be extremely costly and even if the error was not made by you, the cost to defend yourself can create substantial expense.

Type of Insurance Coverage

Marine & Logistics Operators Liability Insurance is for those involved in carrying, storing or facilitating the movement of third party goods by insuring them for their legal responsibility. If you are deemed liable under a contractual agreement for physical loss of or damage to a consignment, the policy would protect this.  Nacora developed it’s own policy wording to guarantee the broadest protection of your liabilities.

Freight Services Liability
Comprehensive liability and physical damage insurance programs for forwarders, NVOCCs and other logistics and distribution companies, including liabilities to cargo and third parties, errors and omissions, and physical damage to containers.

  • Legal liability
  • Physical loss of or damage to any means of transport or transportation equipment
  • Physical loss of or damage to buildings and premises
  • Costs and expenses
  • Items of materials sold, supplied, leased or hired
  • Liabilities, costs and expenses imposed by governmental or Judicial Authorities
  • Fines, duties and penalties

A broad range of protection for marine cargo may also be added through Nacora's legal liability. This may include:


Each of these coverages protects you for a specific operation you perform. The policy pays for damages for which you are found to be legally liable and defence costs of claims made against you, whether or not you are liable. In many liability cases, the costs of defence can and do far outweigh the damage payments.

Claims Coverage
National and International Freight Forwarders Associations recognize the importance of Freight Forwarders Legal Liability and Errors & Omissions insurance and make it a requirement for membership.

Improper Release of Merchandise
The letter of credit required that merchandise be released only to the bank. The Customs Broker failed to follow instructions and released merchandise directly to the Importer who failed to pay the bank. The Shipper sues the Customs Broker for the full invoice value of the shipment plus legal fees and freight charges.

Misdirected Freight  
A Freight Forwarder mixes shipments and sends a shipment to France that should have gone to England. As the merchandise was "time-sensitive", the Consignee loses a sale and sues the Forwarder for the several hundred thousand dollars in lost profit they anticipated.

A Customs Broker was requested by his client to file a protest on increased duties. Although the Importer provided all of the needed documentation, the Customs Broker forgot to file the protest. The Importer held the Customs Broker responsible for payment of the additional duties assessed.

Cargo insurance  
A Freight Forwarder is asked to insure a shipment valued at € 1 million. The Forwarder does so, not realizing the insurance policy limits them to € 500.000 per shipment. The shipment is washed overboard during transit. The insurance company pays  €500.000 and the Freight Forwarder is responsible for the additional € 500.000.

Quota Merchandise
A Customs Broker failed to check with Customs not realizing that a quota on a certain commodity had been closed. The importer could not get his merchandise into the country and sued the Customs Broker for costs incurred and revenues lost as a result.

Other Areas of Protection
In addition to liability exposures gained through operations, there are also other areas that we can help you with, such as:

  • Enhancing your service to customers by providing a cargo insurance
  • Protecting your customs liabilities by issuing bonds.
  • Protecting other liabilities arising from your business.
  • Providing insurance on the assets, property and equipment of your business.
  • Protecting your employees, both in your home country and overseas.