Freight Forwarder's Liability Insurance

Freight Forwarder's Liability Insurance is a specialized insurance product designed to provide coverage for freight forwarders against risks associated with the transportation and handling of goods on behalf of their clients.

This policy supports risk management and provide protection for potential risk exposures which are the key considerations for securing business operations for Freight Forwarders, Logistics operators, Non-Vessel Operating Common Carrier (NVOCC), Warehousemen /Consolidators, Haulage Companies, Customs Broker, Trucking Companies and Multimodal Transport Operator , especially the risks related to Cargo Liability, Errors and Omissions Liability, Third Party Liability (Extension), Fines & Duty and other Costs.

Having Freight Forwarder’s Liability Insurance from PPI will cover against potential liabilities, including:

  • The Assured’s Liability as NVOCC and the issuer of a Bill of Lading, House Airway Bill, Truck Way Bill and/or related document for loss, damage or expenses to cargo, under care custody control of the Assured or the party assigned by the Assured, as a result of the Assured’s services subject to terms conditions exclusions stipulated in Carrier’s Liability and Indemnity Insurance Clauses (NVOCC) incorporated in this Agreement.

  • Carrier's Liability and Indemnity Insurance Clauses (NVOCC) 

A. The Company shall be liable to indemnify the Assured, subject to the limit of liability and the deductible stated in the Certificate/Policy Schedule, for the following loss, costs, expenses, general average contribution and salvage reward.

B. Loss by reason of the liability to the cargo owner imposed by law upon the Assured, or assumed by the Assured under the contract of carriage as defined in the specimen of Bill of Lading, House Airway Bill, Truck Way Bill and/or related document attached hereto, for physical loss of or physical damage to cargo intended to be or being or having been carried in the containers specified in the Policy by or on behalf of the Assured.

                i.      Costs and expenses reasonably incurred by the Assured for the performance of duties provided, and the co-operation with the Company and

               ii.     Costs and expenses incurred by the Assured with written consent of the Company for litigation, arbitration, mediation or reconciliation.

C.    General average contribution or salvage reward assessed on or payable by the cargo as defined in this Section, which either: the Assured is legally liable to pay to cargo, or the Assured is not legally entitled to recover from cargo solely by reason of a breach of the contract of carriage.

D.    Additional costs of discharging and disposing of or restoring damaged cargo insofar as these costs cannot be recovered from any other party.

To file a claim under Freight Forwarder's Liability Insurance with PPI, follow these steps:

1.  Notify PPI Immediately: Contact PPI as soon as you become aware of any incident or potential claim.

2. Document the Incident: Provide detailed documentation of the incident, including photographs, shipping documents, and any other relevant information.

3. Submit a Claim Form: Complete and submit the claim form provided by PPI. Ensure all required information and supporting documents are included.

4. Cooperate with the Investigation: Cooperate fully with PPI's claims adjuster during the investigation process. This may include providing additional information or access to relevant documents.

5. Settlement: Once the investigation is complete, PPI will process the claim and provide a settlement based on the terms of the policy.

The claim form required to file a claim under the Freight Forwarder's Liability Insurance policy with PPI should include the following information:

  • Policyholder's Details: Name, address, and contact information.
  • Description of the Incident: Date, time, location, and nature of the incident.
  • Details of the Cargo: Description, value, and ownership of the goods involved.
  • Supporting Documentation: Shipping documents, photographs, receipts, and any other relevant information.
  • Witness Statements: If applicable.


Ensure all sections of the claim form are completed accurately and thoroughly to facilitate a smooth claims process.


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