While insurance is a product that protects shippers from certain risks, liability coverage concerns the responsibility of the freight forwarders and carriers involved in the shipping process. The third-parties often take out insurance policies to cover themselves against claims of liability should something happen to the shipment.

Cargo insurance is the most relevant for shippers using a third party to transport goods, as it offers direct protection for items being shipped. It covers loss or damage to goods being transported while in the care, custody, or control of the freight forwarder. Shippers are compensated in the event of damage, theft, and non-delivery.

E&O covers the freight forwarder’s liability for any errors and/or omissions that mean the shipper suffers financial losses. If the forwarder fails to correctly document the consignment, in turn causing delays or penalties, E&O insurance offers protection.

Professional indemnity covers the third-party carrier's liability for any financial losses or damages resulting from their professional services. This coverage can protect the shipper if the third-party carrier makes a mistake or fails to fulfill their obligations under the contract.

Freight forwarder’s liability protects carriers and freight forwarders in the case of damage or loss to goods they are transporting. The UK government recommends all freight forwarding companies to have freight forwarder’s liability insurance. This does not insure the actual cargo, which is the responsibility of the shipper.

Third-party carriers like Amazon offer limited coverage to shippers — this is called ‘freight liability’. This is based on the type of goods in consignment, but it does not insure the shipper for the full value of the cargo.

As forwarders, Amazon Freight handles your cargo, and we will pay claims to shippers for any proven loss or damage to shipments caused by Amazon at the actual replacement value of the lost or damaged shipments. Like all transport companies, our liability is limited to any compulsory international convention or national law liability limit. Under CMR limitations, Amazon Freight has a fixed liability at 8.33 SDR per kilo. If the value of goods shipped exceeds this, insurance is highly recommended.

We are not liable for any delays to shipments, nor for any loss or damage to goods if a) this arises from the shipper’s breach of terms and conditions, or b) damage is caused by a ‘Force Majeure Event’ (an unexpected event outside of all parties’ control). All claims for loss or damage to shipments must be made in written format within 12 months after the shipment was consigned for transportation, and contain a copy of signed proof of delivery.