Freight Services Liability insurance

Freight Services Liability insurance – what is it about?

Even the most experienced cargo carriers or freight forwarders are not immune to mistakes that could result in damage, destruction or loss of the cargo entrusted to them. If the carrier or freight forwarder is held liable for such loss, its interests will be protected, and incurred losses will be indemnified by the Freight Services Liability (FSL) insurance policy.

Road Hauler’s liability is regulated by the Convention on the Contract for the International Carriage of Goods by Road (CMR).

What shall we insure?

  • Carrier‘s/Freight forwarder‘s civil liability

  • Errors and Omissions

  • Warehouse keeper’s civil liability

  • Third party liability

  • Freight demurrage and defence costs

What can we include additionally?

  • Liability when damage is caused by gross negligence

  • Cargo debris removal costs after the event

  • Damage to vehicles of subcontractors and to cargo of the others

  • Cabotage carriages according to local legislation

  • Consequential financial losses

  • Cargo storage costs

  • The cost of transporting the goods to their destination, including temporary storage, unloading, reloading and transfer to another means of transport

  • Personal belongings of the driver

  • If Errors and Omissions Clause is included under the policy, we will automatically cover:
  • Customs fines and duties

  • Liability for damages caused by subcontractors

  • Liability for late delivery of cargo

  • If you choose Third Party Liability insurance clause, we will also insure:
  • Liability for environmental pollution

  • For many additionally insured risks sublimits, specified in the insurance policy, apply.

BUNDA FSL insurance advantages

  • Broader insurance coverage than required by CMR Convention

    We insure carriers’ and freight forwarders’ liability, arising under all applicable laws, international conventions and even, subject to prior agreement, contracts or agreements with customers.

  • Total cargo value

    We can extend insurance coverage to include liability for the entire cargo value, not restricted to the CMR convention provisions.

  • Insurance of the entire turnover of transported cargo 

    We automatically insure the entire cargo turnover, so no need to inform us if you buy or sell a vehicle.

Practical examples

Driver,Comes,To,Parked,Truck,And,Opens,Door,Of,Trailer
Food cargo damage by refugees

Claim amount: EUR 58 thousand
During the mandatory driver’s rest period, refugees got into the semi-trailer and damaged the food cargo and its packaging. Due to the potential risk of contamination, most of the cargo has been disposed of.

Trucks,With,Cargo,On,Highway,,Shipping,And,Transportation,Concept
Phantom carrier

Claim amount: EUR 70 thousand
The road hauler hired a subcontractor using the online freight booking platform. The subcontractor with the cargo never arrived at the point of destination.

Broken,Destroyed,Solar,Panel,Outside
Solar panels cargo damage

Claim amount: EUR 23 thousand
The solar panels cargo was damage during transportation. Damage was caused by improper loading / fastening, which under contractual responsibility of the carrier.

viber_image_2020-08-11_13-10-221
Road construction machinery cargo damage

Claim amount: EUR 30 thousand
During transportation, the chain holding the cargo (a road construction machinery – compactor) was broken during the turn, so the compactor fell off and was severely damaged.

Practical examples

Driver,Comes,To,Parked,Truck,And,Opens,Door,Of,Trailer
Food cargo damage by refugees

Claim amount: EUR 58 thousand
During the mandatory driver’s rest period, refugees got into the semi-trailer and damaged the food cargo and its packaging. Due to the potential risk of contamination, most of the cargo has been disposed of.

Trucks,With,Cargo,On,Highway,,Shipping,And,Transportation,Concept
Phantom carrier

Claim amount: EUR 70 thousand
The road hauler hired a subcontractor using the online freight booking platform. The subcontractor with the cargo never arrived at the point of destination.

Broken,Destroyed,Solar,Panel,Outside
Solar panels cargo damage

Claim amount: EUR 23 thousand
The solar panels cargo was damage during transportation. Damage was caused by improper loading / fastening, which under contractual responsibility of the carrier.

viber_image_2020-08-11_13-10-221
Road construction machinery cargo damage

Claim amount: EUR 30 thousand
During transportation, the chain holding the cargo (a road construction machinery – compactor) was broken during the turn, so the compactor fell off and was severely damaged.