The transportation industry and the niches that make up the sector is the backbone of this nation. They are responsible for the transport of goods to businesses that require their services and depend on their ability to deliver goods on time and in good condition. Freight forwarders and customs brokers have an often stressful and complicated job, which requires them to rely on their workers and drivers to get trucks loaded and safely transport these items to their destinations.
Even the slightest oversight can be a costly one. The job comes with a host of risks and concerns including:
- Lost, stolen or damaged cargo
- Delays in shipment
- Errors in consulting, and
- Failure to provide reasonable care
Being vulnerable to financial exposures and liability as a result of improper performance of, or the failure to perform certain professional services can have costly consequences, which is why owners need the vital protection provided by having coverage for errors & omissions (E&O) for logistics professionals.
Whether their job includes the duties of being a customs broker, property broker, domestic freight forwarder, international freight forwarder, NVOCC, warehouseman, etc., there are certain exposures related to the field of transportation that need to be addressed. With constantly changing rules and regulations, as well as today’s litigious environment (in which settlements and awards can be quite large), these companies cannot afford to go without the proper E&O Insurance protection.
During the course of a business day any number of things could go wrong; whether a customer files a claim against the company alleging damages as result of the services provided, or a freight inspector fails to follow instructions, or a negligent employee causes a shipping delay, the result could be the loss of a prominent customer, or a lawsuit, depending on the severity of the mistake.
The list of problems that one could face in the transportation and logistics industry is long:
- Improper quotation of charges
- Incorrect document preparation
- Unauthorized release of goods
- Failure to collect documents
- Incorrect classification of goods
- Failure to insure cargo when instructed to do so, and the list goes on
With reputations at stake, and a strong desire to fulfill obligations, those in the position to ensure the quality of their work strive very hard to do so. But when something goes awry, as it sometimes will, a policy for errors & omissions for logistics professionals will provide those who purchase it with the legal defense along with any settlement amount, per the policy terms, in those times when such issues arise.