Marine carriers liability insurance

Who needs marine carrier's liability insurance?

Freight forwarders and carriers are exposed to a broad variety of risks, with different liabilities applicable for transit by sea, air, road or rail. If you carry goods owned by someone else by sea, you could be liable for any damage to the goods and possibly for secondary damage resulting from your service.

If you carry goods by road, rail, or air, in addition to by sea, then you may need carrier's liability insurance. 

What marine carrier's liability insurance covers 

This cover helps cover the legal liability, defence costs and expenses when goods are transported or stored on behalf of others.

As with marine cargo insurance, understanding responsibility from a risk perspective between parties can be complex. Our marine brokers can help review the terms of sale before a contract is signed from an insurance point of view.

• Limited Carrier’s Risk is the most common contract type in New Zealand and applies by default unless specified otherwise. The contracting carrier is legally responsible for loss or damage to the goods throughout the duration of the contract, regardless of who actually damages or loses the goods, but with a set, limited liability per unit of goods.
• Declared Value Risk where the carrier agrees to be liable for a specified amount.
• Declared Terms where the carrier agrees to terms negotiated by all parties.
• Owner’s Risk where the contract states that the carrier shall not be legally responsible for any accidental loss or damage to goods.

Even if you carry cargo on the basis of ‘Owner’s Risk’, if you have an accident and the cargo gets damaged, you may still be liable for some cargo-related costs as the carrier. For example, cover can be arranged for removal of debris and any subsequent clean-up costs, plus additional costs that may be incurred to carry remaining goods to their destination.

Help with marine insurance

Our marine specialists have experience with marine broking and underwriting. We maintain strong relationships with the Marina Operators Association (MOA) and help many of New Zealand’s privately-owned marinas to get their insurance sorted.

As one of New Zealand’s largest insurance brokers, our size helps us to negotiate competitive premiums, benefits and conditions for clients. We can also leverage our international connections when needed.