Freight Forwarders

When disaster strikes, are you covered?

Freight Forwarders

Freight forwarders are exposed to unique risks every day. Rely on Avalon for protection and security.

OTI Bonds

If you’re arranging ocean transportation, let us provide your required OTI bond and keep you in compliance.

Cargo Insurance

What would you do if a customer’s shipment arrived damaged or was stolen in transit? Avalon’s tailored coverage and professional claims handling provides peace of mind and protects your client relationships. Use our innovative Merlin technology to streamline certificate issuance and save time.

Actual Claims Examples

To illustrate how valuable Avalon’s Combined Transit Liability program is in managing your business risks, read about these actual claims.

  Negligent Selection of Carrier

Claim Example: Negligent Selection of Carrier

An air shipment was consigned to a freight forwarder, which contained products needing the temperature to be maintained between 40°F and 50°F. The forwarder was aware and informed the airline, but the carrier failed to follow instructions. The product spoiled and the shipper held the forwarder liable for the amount of lost products. Because the forwarder provided proper instructions to the carrier and used Terms & Conditions of Service, the claim was successfully closed without the need for litigation.

  • Claim Amount: $20,215
  • Settlement: $0
  • Legal Fees $8,657
  • Insured’s Deductible: $5,000

  Prior Acts Coverage

Claim Example: Prior Acts Coverage

In 2011, a freight forwarder bought Avalon’s CTL program with coverage options of Prior Acts coverage and First Dollar Defense coverage. Also in 2011, the freight forwarding company was sued by an importer for loss to cargo in 2009. The importer claimed the loss resulted from the freight forwarder's negligence in hiring an airline. The freight forwarder filed a claim, and since the forwarder purchased Prior Acts coverage, claims occurring before the policy period but reported during the policy period are covered. The insurance company appointed a lawyer to help fight the claim amount in court, and the lawyer argued that the freight forwarding company made no errors in handling the shipment. The case did not proceed past basic arguments and the lawsuit was dropped. Since the freight forwarder purchased First Dollar Defense, which covers attorney fees to defend claims above the deductible, they didn't have to pay attorney fees.

  • Claim Amount: $62,000
  • Settlement: $0
  • Legal Fees: $8,500
  • Insured’s Deductible: $10,000

  Physical Damage

Claim Example: Physical Damage

A freight forwarder was hired to arrange for the shipment of pharmaceuticals via ocean. The freight forwarder provided a confirmation to the shipper, which utilized Terms and Conditions of Service and Limits of Liability. The drum was received and upon further inspection, was found to be empty because the contents leaked from the damaged bottom. The shipper sued the freight forwarder as a result of a claim received from the consignee. The freight forwarder’s CTL program appointed an attorney who had the case dropped from court.

  • Claim Amount: $11,250
  • Settlement: $0
  • Legal Fees $7,867
  • Insured’s Deductible: $5,000

  Incorrect Reefer Settings

Claim Example: Incorrect Reefer Settings

A freight forwarder was hired to make arrangements to ship a cheese product overseas, including the packing of the container. The instructions from the shipper included the temperature the cheese product needed to remain at in order to avoid spoilage. The cheese product was not packed in a reefer container and was spoiled when delivered to the consignee overseas. The freight forwarder was sued by the shipper for the amount of the shipment, citing that the temperature required was stated in the instructions and a professional in the industry should have known to use a reefer container. The freight forwarder’s CTL program with First Dollar Defense covered the cost of the claim minus the deductible and also covered the legal fees.

  • Claim Amount: $28,840
  • Settlement: $28,840
  • Legal Fees: $4,150
  • Insured’s Deductible: $5,000

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Professional Liability

How would you respond if a customer filed a lawsuit accusing you of improper selection of a carrier? What if a shipment was misdirected or delayed because of your clerical error? Know your assets are protected from an insurance provider who fully understands your business.

Business Insurance

At Avalon, your coverage expands with you. Our Business Insurance program covers the additional exposures undertaken by Certified Cargo Screening Facilities (CCSFs). Beyond Property & Casualty coverage, we offer Workers’ Compensation, Umbrella, Commercial Auto and Executive Protection.

Download Applications
Surety Bonds
Miscellaneous Bond Application & Indemnity  Word  PDF
Avalon Carnet Bond Application  Word  PDF
Carnet Application  Word  PDF
General List  Word  PDF
Power of Attorney - For Exporter  Word  PDF
Power of Attorney - For Freight Forwarder  Word  PDF
Cargo Insurance
Cargo Insurance Application  Word  PDF
Special Quote Application  Word  PDF
Professional Liability
Professional Liability Application  Word  PDF
Regulatory Defense Contract Application  Word  PDF
Special Contract Application  Word  PDF
Business Insurance
Business Insurance Master Application  Word  PDF
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