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Insurance & Transit Loss FAQ

How do I verify a freight forwarder's liability coverage before trusting them with a high-value shipment?

Short answer: Ask the freight forwarder directly for documentation of their liability insurance, including coverage limits and what specifically is covered, and verify this independently if possible rather than relying solely on their own assurance — for a genuinely high-value shipment, confirming this before committing is a reasonable, proportionate precaution given what's at stake.

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Why liability coverage verification matters for freight forwarders specifically

A freight forwarder handling your shipment carries responsibility for it during transit, and their own liability coverage, or lack thereof, directly affects what recourse you’d have if something goes wrong under their care — this makes their coverage a genuinely relevant thing to verify before committing a valuable shipment to them.

What documentation to actually request

Ask for specific proof of liability insurance, including the coverage limit and what perils are covered, rather than accepting a general verbal assurance — a legitimate, established freight forwarder should be able to provide this documentation without hesitation.

Why this matters more for higher-value shipments

For a modest shipment, this level of verification may be more effort than the situation warrants — for a genuinely high-value shipment, the proportionate additional diligence of confirming coverage limits actually exceed your shipment’s value is a reasonable, worthwhile precaution.

How ScrapTrade Makes This Easier

Buyers on ScrapTrade experienced with larger shipments should be able to speak confidently about their freight forwarding partners’ liability coverage, worth confirming before committing a high-value load.

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