A customs broker’s daily operations involve attention to detail, extensive documentation and keeping abreast of constantly changing rules so that your business remains in compliance. Yet unintentional mistakes and inadvertent errors can and do happen, particularly in a business environment where requests from clients are for “yesterday”. The opportunity for errors is further heightened in the hustle and bustle of today’s new normal for transportation intermediaries.
Errors and Omissions (E&O) insurance is designed to address the type of potential professional liability losses customs brokers and freight forwarders face as a viable way to manage the financial impact when a claim is made. Remember, for most, unfortunately, it’s not a matter of if such an event will occur – it’s a matter of when. Additionally, the fact is, that it really doesn’t matter if you actually made a mistake or not, the customer is looking for someone to remedy their financial loss and they’re going to pursue whatever avenue is available to them to recover their losses. If it’s a customs-related loss, the likely target of their efforts will be the customs broker.
E&O insurance provides you with the legal defense and settlement (if awarded) per the policy terms in the event a customer files a claim against your company alleging damages as result of the services you provided. When deciding upon the insurance program to purchase, it’s important to consider several key factors, including the financial strength of the insurance company, continuity of coverage from year-to-year, and claims handling services for the program you choose. Also, the key is that the coverage you choose addresses risks specific to your operations, finances, and the amount of liability you’re comfortable taking on without insurance. What’s more, E&O policies are not the same, and policy terms differ from one insurer to another.
Customs Brokers are exposed to various risks including negligence, mis classification and customs clearance errors. When a claim arises, our comprehensive coverage forms along with a team of experienced brokers and skilled legal counsel will help you through these challenging times. Our experts have designed a professional liability policy with unique enhancements for customs brokers that minimize or eliminate potential financial losses.