Carrier Legal Liability
An insurance policy designed to provide coverage for the bailee exposure of cargo carriers that would result from damage to property of others that has been entrusted to the carrier for transport.
The policy pays all sums for which the insured shall become legally liable as compensation for physical loss or destruction of or damage to goods or merchandisewhile in the insured’s custody, while in transit, including during loading or unloading and while temporarily housed on or off vehicles in the ordinary course of transit.
Policy's coverages are as under:
- Carrier's liability for cargo in his custody
- Cargo salvage, transshipment, emergency storage costs
- Financial loss due to the lost freight in respect of the damaged part of the cargo
- Legal and other costs, incurred in the litigation against the claimants
- Costs of average adjusters
- Breakage due to improper handling
- Flood or water damage or damage by other cargo
The cover will commence with the loading of cargo on the vehicle and will be in force until unloading of the cargo at the discharging point or expiry of 7 days after the first arrival of the vehicle at the destination town whichever may first occur.
