cargo insurance
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Carrier’s Liability under CMR Convention
1. What is „Carrier’s Liability Insurance (CMR Liability Insurance)” Carrier’s Liability Insurance (CMR Liability Insurance) is a type of insurance coverage for carriers (trucking, shipping or transportation companies). It provides protection against financial losses incurred due to damage or loss of goods during transit. This insurance covers the carrier’s liability for loss or damage to the goods. Up to a specified limit, as defined in the CMR Convention. Convention on the Contract for the International Carriage of Goods by Road is an international treaty that defines the rights and obligations of carriers and consignors. The CMR insurance helps to ensure that the carrier is protected against potential financial claims. By the consignor or the consignee in the event of loss or damage to the goods. 2. Is CMR Liability Insurance a must for every transport company? There are several reasons why this kind of insurance product became a must in the field of logistics: Legal/Contractual obligation. Under most contracts for carriage, carriers are legally obliged to have insurance coverage for the goods they transport. Financial Protection. This insurance provides financial protection to carriers in case of loss or damage to goods during transit. It helps carriers to cover their…
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What are the Responsibilities of the Freight Forwarder?
1. What is Forwarder’s Liability Insurance? This type of insurance product is chosen by owners and managers of forwarding companies who want to run a successful and sustainable business, despite the risks they take in carrying out their activities. “Forwarder’s Liability” insurance covers the contractual liability of the insured company for the transport, forwarding and logistics contracts it concludes with its customers. This is because the freight forwarder is liable not only for damages caused by its employees, but also for those caused by its chosen subcontractor. This condition is valid for any type of contract and transport and is regulated by the applicable transport law or Convention. For example, in the case of a land transport contract, Art. 3 2 of the CMR Convention 3 defines this condition. Why do we mention contractual liability? Precisely because it is the basis of the type of coverage and the series of insured risks that are mandatory for this policy to be an efficient tool in case of damage. A little below we will pay special attention to this topic. 2. Why is Forwarder’s Liability Insurance necessary for every forwarder on the market? Like many other insurances, this one is also…
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What is valuable to know about “Cargo Insurance” in 2022?
1. What is Cargo Insurance? 🤔 Cargo Insurance is a risk management tool designed for cargo owners, traders, freight forwarders and logistics companies. It provides protection for goods during transport. This is the most reasonable and safe way for companies to ensure that they are compensated for the exact value in an event of loss. Businesses that choose cargo insurance instead of keeping their fingers crossed for their shipments are aware of the many drivers in the transport chain. They are familiar with the many variable conditions and the likelihood that their cargo will be damaged or devalued by an external event. Does that mean they are negative, thinking that the worst could happen? Fortunately – no! Rather, it is market knowledge and realistic judgment. Statistically, very often something goes wrong with transports and losses occur due to unforeseen events. The leading idea of cargo insurance is to provide peace of mind when it comes to events during transport. The fact that you may have never had theft or damage to your cargo does not reduce your overall risk exposure. To understand why this view is incorrect, we need to look at how many problems there are annually with basic…
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