Cargo Storage, Delivery, and Bailee Liability Insurance

bailee liability

The freight forwarder takes on the responsibility of handling the products for businesses that pay to have their goods delivered as guaranteed. This often requires dealing with numerous barriers that have to be overcome in order to successfully ship these products to the end user. When storing or handling goods without issuing a document that defines any Bailee Liability, the logistics provider has a potential exposure to liability for any cargo that suffers a loss or is damaged.

Because this liability is often unlimited, your client should understand that Bailee Liability insurance is a requirement. This policy responds to physical loss or damage of property in their care, custody or control, without regard to any negligence that may take place. Companies depend on your client as a specialist working in this field, and as his or her broker, you need to properly protect your client.


Several companies are usually involved in the process

One of your clients main functions is to act as an intermediary between the customer theyre working for, and various transportation services that are all working in tandem to get the product delivered overseas to the end user. There are often many transportation companies involved in the movement of those items (depending on the final destination and the nature of the items shipped) from supplier to customer, and this is where the issues often crop up. Something as simple as a minor miscommunication, or an error in labeling of goods, can cause major issues to spring up.

Your client often ends up dealing with many different export and import issues, all of which are involved in the movement of their customers goods, but as is often the case, theyre the one who was actually hired to get the product to its destination by a specific date. That is why they must carry bailee liability insurance coverage in order to make sure that, if the items do not arrive undamaged, the customer will be properly reimbursed.

It would greatly help to provide assistance to the customer on how to best package their products for export, as well as attaching the correct labeling required, along with the proper documentation, in terms of any hazardous items, country of origin, correct weight in pounds and kilograms, port of entry details, and any other details that are required in the language of the destination country.