The transportation industry is the backbone of this nation mainly because they are responsible for the transport of goods to businesses that require their services and depend on their ability to deliver cargo in good condition and on time. Freight forwarders and customs brokers have a job that is often stressful and complicated, requiring them to rely on their employees and drivers to get trucks properly loaded, along with the safe transport of these items to their destinations.
Even the slightest oversight can result in a claim of errors & omissions for logistics professionals, and such a claim can be costly. This line of work comes with several risks and concerns, including:
- Lost, stolen or damaged cargo
- Delays in shipment
- Errors in consulting, and
- Failure to provide reasonable care
The failure to perform certain professional services can have dire consequences, and that’s why owners are in need of the protection provided by having coverage for errors & omissions (E&O) for logistics professionals. During the course of a business day any number of things could go wrong. 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.
In today’s litigious environment, with constantly changing rules and regulations, these companies cannot afford to operate without the proper E&O insurance protection in place. It could simply be the case of a negligent employee who causes a shipping delay, but 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, the result could be the loss of a prominent customer, or an impending lawsuit, depending on the severity of the error.
So many problems can occur on a daily basis in the transportation and logistics industry, and the list of issues continues to grow:
- Improper quotation of charges
- Failure to collect documents
- Incorrect document preparation
- Unauthorized release of goods
- Incorrect classification of goods, and
- Failure to insure cargo when instructed to do so, to name just a few
When, for whatever reason, things don’t go according to plan, a policy for errors & omissions for logistics professionals will provide those having coverage any necessary legal defense, along with paying the settlement amount per the policy terms, whenever a lawsuit is filed.