1. What is „Carrier’s Liability Insurance (CMR Liability Insurance)”
Carrier’s Liability Insurance (CMR Liability Insurance) is a type of insurance coverage for carriers (trucking, shipping or transportation companies). It provides protection against financial losses incurred due to damage or loss of goods during transit. This insurance covers the carrier’s liability for loss or damage to the goods. Up to a specified limit, as defined in the CMR Convention. Convention on the Contract for the International Carriage of Goods by Road is an international treaty that defines the rights and obligations of carriers and consignors. The CMR insurance helps to ensure that the carrier is protected against potential financial claims. By the consignor or the consignee in the event of loss or damage to the goods.
2. Is CMR Liability Insurance a must for every transport company?
There are several reasons why this kind of insurance product became a must in the field of logistics:
- Legal/Contractual obligation. Under most contracts for carriage, carriers are legally obliged to have insurance coverage for the goods they transport.
- Financial Protection. This insurance provides financial protection to carriers in case of loss or damage to goods during transit. It helps carriers to cover their expenses and potential liabilities, which can be substantial in case of high-value goods.
- Customer Trust. Having Carrier’s Liability Insurance with proper coverage shows that a transport company is committed to providing a professional and responsible service. Customers are more likely to trust and choose a transport company that has premium insurance coverage. This can help to attract new business and retain existing customers.
- Peace of Mind. Carrier’s Liability Insurance provides peace of mind to carriers, as they are protected against potential financial losses and liabilities. This insurance helps carriers to focus on their core business operations and to worry less about potential claims or lawsuits.
3. What risks should be covered by premium Carrier’s Liability Insurance?
Carrier’s Liability Insurance should cover the risks associated with the activities that the insured company carries out. It is mandatory to cover all types of events, according to the responsibility under the CMR Convention. Those dangers can be: damages, shortages and thefts. Delays in delivery, as well as damages caused by the entry of emigrants. Last but not least, this type of insurance must also cover events that occurred as a result of willful misconduct as per Article 29 CMR Convention. In such situations, the carrier’s limited liability according to Art. 23.3 CMR (up to 8.33 SDR/kg of the loss), falls away and cannot be invoked. In that way the carrier’s liability can become unlimited. He might be guilty for the total commercial value of the actual damages.
It is important to note that each insurance policy is different, and the coverage may vary based on the insurer and the specific policy. It is vital to review thoroughly the policy terms and conditions and consult with an experienced insurance broker. Cargofort Ltd can help you to understand the specific coverage provided by a CMR liability insurance policy.
4. How are CMR Liability Insurance claims are typically resolved?
If the right insurance partner is selected – you will have terms designed specifaclly to cover all common contracts and activities! If that is the case – solving claims and damages is an easy process:
- Notification of Loss or Damage. The claimant must immediately notify the carrier in writing for any loss or damage to the goods during transit. Carrier must also inform the insurer.
- Investigation. The insurance company will then investigate the claim to determine the cause of the loss or damage and the extent of the damages. This may involve gathering evidence, organizing a survey and reviewing documentation.
- Negotiations. If the claim is covered under the insurance policy, then the insurance company may negotiate with the claimant to reach a settlement agreement.
- Payment of Claim. If a settlement agreement is reached, then the insurance company will pay the agreed amount to the consignee or consignor.
- Dispute Resolution. In the event of an unjustified claim, the insurer would reasonably reject a claim on behalf of the insured. As well as defend it even if the case goes to court.
5. Can Cargofort be your right partner?
It is crucial for the abovementioned solution approach to take place to enable the carrier to select a qualified partner. This will give him the greatest and most pertinent insurance coverage. In addition, he will have the experience, resources and capacity to deal with any case that arises in an efficient manner. In that way, the carrier does not have to be personally involved in every step of the process. It is of utomost importance that the insured does not suffer damages and losses due to coverage limitations or poor control over the claim.
Cargofort’s specialization and experience naturally led to the creation of a “Carrier CMR Liability” insurance product. A solution made up of all the necessary coverages, limits and professional handling of transport claims. So that shippers can rest easy and confident that their insurance cases are being finalized efficiently!
The transport and logistics business is tense and dynamic, and decisions sometimes have to be made in seconds…
By choosing Cargofort, you get the security and comfort that you have a reliable and adequate partner. As a result, you can rely on stellar decision-making for all important insurance decisions!
CARGOFORT – THE BEST WAY FOR THE SUCCESSFUL CARRIER TO SHIP WITH COMFORT!