Shippers Interest


The Importance of Shipper’s Interest Coverage Under a Freight Forwarder’s Policy

As the U.S. economy continues to move forward, one of the fastest-growing industries is Logistics and Freight Forwarding. While the term “freight forwarder” is used loosely, it encompasses a broad spectrum of services with respect to logistics, supply chain, and the direct or indirect transportation and warehousing of goods worldwide. More and more freight forwarding startups are entering the space, resulting in a highly competitive environment. 


Becoming More Attractive to a Shipper

Shippers look to avoid any paperwork, bureaucratic procedures, border issues, insurance requirements, and all possible hassles associated with the transportation of goods, both domestically and internationally. If a freight forwarder, while acting as direct or indirect carrier or transportation intermediary (broker), manages to become a “one-stop hub”, its portfolio is sure to grow. To successfully achieve this, the broker or carrier must have the option to offer “All Risk” Cargo and Warehouse insurance coverage to their clients or prospects, thus insuring the shipper’s interest.


Shipper’s Interest is Not Your Regular Cargo Policy

In essence, both Cargo and Shipper’s Interest policies cover goods against all risk of physical loss or damage from any external cause (subject to certain basic exclusions), but there are some key differentiators.

  1. While a regular Cargo policy is issued to importers and exporters for particular goods and/or merchandise incidental to their business, Shipper’s Interest is a policy designed by underwriters taking into account that a freight forwarder will transport an incalculable variety of commodities.
  2. On a Cargo policy, the insured/shipper is the policy holder, while on a Shipper’s Interest policy, the freight forwarder is the policy holder. Insurance is offered through the freight forwarder to their clients (insured/shipper) as a value-added service to attract new business, but claims are paid directly to the client.
  3. A standard Cargo policy covers one insured in particular, while Shipper’s Interest is offered to each of the forwarder’s clients on a per shipment basis, at rates and parameters stated upon quoting.
  4. On a Shipper’s Interest policy, the policy holder (freight forwarder) has access to a Certificate Issuing Platform which already calculates premiums and conditions based on the information entered. This facilitates a quick turnaround to their clients.
  5. Shipper’s Interest is an optional coverage that the freight forwarder offers to their clients. They are not obligated to accept the coverage.

Shipper’s Interest coverage serves both domestic and international forwarders and transportation intermediaries, regardless of the size of their operation.

Do Not Mistake Shipper’s Interest for Cargo or Warehousing Liabilities 

All freight forwarders, whether asset or non-asset based, should always retain (when applicable) the following coverage:

  • Carrier’s Legal Liability
  • Freight Forwarder’s Legal (Contingent Cargo on all conveyances)
  • Freight Forwarder’s Errors & Omissions
  • Warehouse Legal Liability (when applicable)

The purpose of the Shipper’s Interest section under their policy is not to undermine the necessity of these essential coverages, as they protect and defend freight forwarders in cases where they are legally or contractually liable. However, when an insured accepts coverage under the Shipper’s Interest policy that is primary in responding to such a loss, it is beneficial for all coverages to be kept under a single insurance carrier to provide a cushion against damaging their loss history, simplify the claims resolution process, and reduce the potential for gaps in coverage. 


Freight forwarders and shippers operate in a very competitive environment and require comprehensive insurance solutions. Added services, such as Shipper’s Interest policies, are a key differentiator between a forwarder and their competitors. While this growing market segment provides a business growth opportunity for retail brokers, this is a complex coverage, and risks can differ for each freight forwarder depending on the specific services they provide. To learn more about the varying roles of a freight forwarder and the associated risks, view the article found here.

AmWINS Specialty Logistics Underwriters (ASLU), an AmWINS Group company, is a managing general agency specializing in the complex risk factors of the logistics and cargo industry. ASLU is dedicated to offering a high level of service to their clients through a unique balance of industry knowledge, responsiveness and technology. To learn more, visit


This article was written by Alex Rosas, Executive Vice President of AmWINS Specialty Logistics Underwriters (ASLU).

Contact Us

To learn more about how AmWINS can help you place coverage for your clients, reach out to your local AmWINS broker.  If you do not have a contact at AmWINS, please click here.

Legal Disclaimer. Views expressed here do not constitute legal advice. The information contained herein is for general guidance of matter only and not for the purpose of providing legal advice. Discussion of insurance policy language is descriptive only. Every policy has different policy language. Coverage afforded under any insurance policy issued is subject to individual policy terms and conditions. Please refer to your policy for the actual language.

(c) 2017 AmWINS Group, Inc.

Most Popular Insights

From Seed to Sale: The Top 5 Issues Impacting the Cannabis Insurance Industry


​Over the last few years, the legal cannabis industry has seen rapid growth and had a significant impact on the U.S. economy. With states continuing to legalize its use, insurance needs for cannabis-related businesses are becoming a popular topic of discussion. This article examines the evolving cannabis industry by exploring five key issues impacting coverage.

Four Key Additional Insured Endorsements for Contractors

Construction contract negotiations, which determine the kind and amount of insurance required for a construction project, can be time-consuming, complicated and frustrating. Project owners require contractors on a project to name the project owner as an additional insured on the contractor’s casualty insurance program. It's important that both project owners and contractors understand the coverage provided by these additional insured endorsements. This article discusses four common ISO additional insured endorsements related to commercial general liability policies purchased by contractors, including their limitations, conditions and exclusions.

Claims Reporting: Better Late than Never?

A common complication during the claim process is the late reporting of claims. In some cases, a late claim can put the agent or broker's own E&O policy in jeopardy. There are many reasons for missing a reporting deadline; however, in most cases, they will not matter to the insurer or the courts. This article discusses typical claim reporting requirements, common causes of late reporting, and recommendations to mitigate the risk of late notice claim denials.

Understanding Property Theories of Recovery and Ensuing Loss Clauses

​The theories of recovery, as well as the ensuing loss provisions, contained in property insurance policies are often complex and, at times, seemingly in conflict. Although a policy may not directly address these theories, their application by courts plays a significant role in the coverage determination process after the claim. It is essential that brokers understand the primary theories of recovery – Efficient Proximate Cause, the Concurrent Causation Doctrine, and the Anti-Concurrent Causation Doctrine – in order to navigate the challenging post-claim process and effectively serve their clients.

Ordinance or Law Insurance Coverage

Ordinance or Law insurance coverage provides limited protection for costs associated with repairing, rebuilding, or constructing a structure when physical damage to the structure by a covered cause of loss triggers an ordinance or law. Compliance with ordinances and laws after a loss can add 50% or more to the cost of a claim. This article will help you educate your insureds on exclusions and limitations and help them take a proactive approach to their insurance program.

Employment Practices Liability in the Age of #MeToo

In 2017, the issue of sexual harassment – especially in the workplace – gained greater awareness as accusations of harassment by high-profile individuals were constantly in the news. In many cases, sexual harassment lawsuits seriously impacted businesses and their respective insurers. Employment Practices Liability Insurance not only provides protection against employee lawsuits, but can also help your clients mitigate their sexual harassment risks.

Sign Up For Our Monthly Newsletter

Sign Up