Contingent cargo insurance is a type of coverage designed to protect transportation intermediaries, such as third-party logistics providers, property brokers, and other forwarders who do not issue bills of lading or have custody of cargo, from the financial responsibility of cargo loss or damage during transit.
Cargo liability coverage is there to protect the actual cargo carriers or entities that present themselves as the carrier such as an FMCSA licensed domestic freight forwarder. Contingent cargo legal liability insurance defends the logistics service provider who does not present as a carrier. Contingent insurance steps in when the carrier’s cargo legal liability insurance fails to respond to the loss, and the logistics service provider is drawn into a claim.
