Freight Liability. Your specialist commercial insurance partner across Europe

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1 Freight Liability Your specialist commercial insurance partner across Europe

2 What is Freight Liability insurance? Freight Liability Insurance is an essential safeguard for every business involved in the transportation and warehousing of goods. This includes third party logistics, freight forwarders and full supply chain management companies, and the policy covers their legal liability for loss or damage to goods carried or stored as defined by contract conditions or applicable International Conventions. Policy Benefits Through our Freight Liability Policy, we provide a comprehensive and competitively priced product, which is vital in an industry that often trades on tight margins Who are our insureds? Road Carriers including Hauliers, Parcel Carriers, Pallet Networks Rail Carriers including Multi-Modal carriers Air and Sea including Freight Forwarders Third Party Logistics including full supply chain management companies If your clients move their customers goods within the UK, into Europe or across the globe, then we can help you keep their liability for loss or damage to those goods covered. 2

3 Summary of Policy Cover Cover available as below: cnaeurope.com Liability for Customers Goods Liability for loss of or damage to customers goods under contract or international convention, including: Legal costs and claimants legal costs in addition to the policy limit No restrictions for unattended vehicles. Driver asleep in cab is deemed to be attended Liability for consequential loss and delay up to a maximum limit of GBP 250,000 Cover for lien up to a maximum limit of GBP 100,000 Transhipment/removal of debris costs. GBP 50,000 limit Liability for third party trailers or containers. GBP 75,000 limit General Average Guarantee Cover for Full Responsibility (optional) Cabotage Unwitting CMR Contingent common law liability GBP 1,000,000 limit Incorrectly received goods up to a limit of GBP 50,000 and in the aggregate Sheets, ropes and similar. GBP 25,000 limit Few excluded goods stamps, bonds, bullion, money and similar, living creatures, towed goods and removals Employees tools/effects. GBP 500 limit Errors and Omissions Liability for breach of professional duty as a direct result of a negligent act, error or omission. Claims made by Customs Authorities Including Community Transit form liability (optional) Equipment Insurance Loss of or damage to trailers and containers owned, hired or leased, or on loan including: New replacement cover for equipment where required under a lease Liability for continuing hire charges on leased equipment. GBP 25,000 limit General Average and Marine War risks 3

4 How to apply The information needed to obtain a Freight Liability quotation is contained in our Proposal form, a copy of which is available on our website 4 Why should your clients trade under contract conditions? To reduce their liabilities To achieve a more predictable exposure assisting the setting of policy limits It is good Risk Management practice To obtain greater certainty for customers and fewer disputes To achieve a consistent approach since acceptance of liability is not a competitive issue Recognised terms means your client is easier to trade with Why should your clients buy Freight Liability Insurance? To protect their liability assumed under contract conditions To protect them from the strict and non-negotiable liabilities imposed upon them by International Conventions To insure their contingent Common Law liability To safeguard their liability as Bailee in respect of third party trailers and containers To obtain cover for errors and omissions arising from their insured business activities To cover goods held under a lien To insure their liability for incorrectly received goods To obtain cover for own trailers and equipment

5 Common misconceptions about Freight Liability Insurance I don t need trading conditions because the business is subcontracted to me. Unfortunately the Principals trading conditions do not transfer to the subcontractor, and failure to trade under own contract conditions could result in the client being judged as a Common Carrier and liable for the full value of the goods plus any consequential loss. cnaeurope.com I print my trading conditions on my invoices and make references to them on my footer. This is not good enough. For your client to have the benefit of their trading conditions, then they must be incorporated and the customer must be made fully aware of the contract conditions prior to the haulier undertaking the work. I do not need CMR cover as my vehicles never leave the UK. Depending how the CMR note is issued, then your client can still be held liable as a first or last carrier under CMR, and a liability as such can even be incurred if the first carrier does not operate any vehicles. The goods are insured by the manufacturer so I don t need cover. As a Bailee for reward, your client has a responsibility for the safety of their customers goods and any loss in their custody may result in a claim from the subrogated Cargo Insurer or the customer themselves. I don t need to check my subcontractors insurance. When passing goods onto subcontractors it is important that your client asks for proof of freight liability insurance, and it is essential that this is done when enhanced limits of liability apply to ensure that a Back to Back indemnity is achieved before the goods are handed over. 5

6 The CNA advantage value added services & companion products When you choose CNA, rated A (Strong)* by Standard & Poor s, you get more than solid protection from a respectable and established Insurer. You also get: In house claims handling by CNA experts so your business can get on with its business An experienced underwriting team with specialist underwriters in local branch offices Risk control professionals to help reduce claims and save money CNA underwriters are expert in the field of risk transfer and can analyse contractual exposures of trading conditions which apply to contracts of carriage and the incorporation of such conditions into your clients contracts with their customers. We can give assistance on which might be the best conditions to use, and how best to comply with local laws and legislation when transporting goods from one country to another. We can also advise you about Cargo opportunities such as Shippers Interests/Open Cover policies for your client. If you want to hear more then please contact your local CNA office by visiting our website at 6 *Ratings correct as of 23rd September 2013

7 To find out more, please call us on: +44 (0) or contact your local CNA office. Alternatively, please visit cnaeurope.com 2 Minster Court Mincing Lane London EC3R 7BB United Kingdom Tel +44 (0) Fax +44 (0) CNA Insurance Company Limited Registered in England number 950 Registered Office: 2 Minster Court Mincing Lane London EC3R 7BB VAT registration number A member of the Association of British Insurers A Member of the CNA Financial Group Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority (number ) CNA Europe is a trade mark of CNA Financial Corporation CNA is a registered trade mark of the CNA Financial Corporation 22477/0414