Limiting your liability when cargo goes missing
When something goes missing in transit it causes frustration and may potentially bring about additional costs. From the original cargo owner to the shipping crew to the logistics team, it is easy to pass the buck from place to place.
Ms Wendy Ng, who adopted the Multimodal Freight Liability Insurance for her company, was happy with the recent handling of a chaos at her company. She explained, “We were engaged by one of our long-term customers to arrange shipment of 20 cartons of electrical circuits by air. We, as we often did, consolidated this order with a number of other shipments and booked a flight. This has been a standard procedure and everything seemed to be progressing as planned.”
Wendy added, “We issued the HAWB and there were no queries at all. There was nothing to be concerned about”. However, on arrival at its final destination, the agent’s warehouse staff noted a missing carton. Searches ensued on the plane, at the airport and on the routes in between, but the cargo had vanished.
The company received a cargo liability claim and fortunately was covered by the Multimodal Freight Liability Insurance. The cargo liability section of the policy offers the Transportation and Warehousing Liability that provides coverage for physical loss or damage to the property of others (cargo) arising from your negligence whilst:
- in transit in a vehicle owned or leased by you
- at your warehouse owned or leased by you, as scheduled in the policy
- handled by parties assigned by you but not in your care, custody or control
To find out more about the Multimodal Freight Liability Insurance, click here.