Does Insurance Come with Freight Broker Transportation Services

In recent times there have been lots of questions asked about the transportation industry which has either influenced the decisions of owners of goods either positively or negatively. Amongst these questions, the one that seems to always be ahead is the issue of whether insurance is included in freight broker transportation services in Australia.

If you happen to be among such persons then it is fair enough to point out that you are at the right place. This is because you will soon be discovering some of the issues related to insurance and freight broker transportation services. Being exposed to these facts will help you to be sure when making a decision on which freight brokering firm to hire its services.

What You May Need to Know

The issue of knowing about insurance and how it relates to the services rendered by freight brokers is very important in Australia. This is because it can help you to cushion the effects of potential losses that may want to arise. It is important to note that freight brokers do have a variety of insurance policies available to them. It is not all that are important to you and your business. Most freight brokers do have what is called contingent cargo insurance.

This insurance becomes useful when there is a loss arising from goods which were kept in the custody of a freight broker. When such happens, the shipper may want to ensure that the freight broker is held responsible. In such a case, it is the contingent cargo insurance that will be used to address such loss.

When It Is Used

Contingent cargo insurance is used by the freight broker to have such losses covered. It is an insurance policy that protects the interests of freight brokers from carriers who may want to make false claims. Take for instance; you decide to have your goods shipped using the services of freight broker to another country outside Australia through the air.

Unfortunately, something happens on the way and half of the goods got thrown out to save the plane. It is only normal that the carrier may not want to compensate you. In such case, the freight broker may be under pressure from you. What is usually done in such an instance is that compensation can only be possible if the freight broker does have contingent cargo insurance in place.

It is very important even though it is not a necessary requirement to have. However, every carrier (such as you) as well as the shipper is always interested in knowing whether a freight broker has it in place.