Combined cover for loss during the carriage, storage and transhipment of international cargo entrusted by shippers, and for third-party liability, for forwarders and multimodal-transport intermediaries. The standard for businesses issuing KIFFA, FIATA and IATA bills of lading.
N2N Insurance Brokerage does not represent any single insurer — it independently represents the client as an FSS-registered broker (Reg. No. 2026-012201). We compare the wordings, rates and service of AIG · Chubb · DB · Hyundai · KB · Meritz to propose the cover and price best suited to your risk. Each insurer's full wording is provided at application and binding.
Freight Forwarders Liability (FFL) insurance covers the legal liability for cargo loss and third-party loss arising as forwarders and multimodal intermediaries take on a shipper's cargo and carry, tranship, store, clear and deliver it internationally.
Base cover is built on three pillars — ① cargo liability to the shipper (Goods-Legal Liability), ② Third Party Liability, and ③ Professional Indemnity. Businesses issuing KIFFA, FIATA and IATA bills of lading are the main subjects, while purely domestic transport is governed by a separate wording (carried-goods liability).
Compensation to the shipper for cargo loss (damage, theft, total loss, delay) during carriage, storage, transhipment and clearance.
Compensation for third-party bodily injury and property damage from forwarder operations.
Compensation for negligence in professional advice and document handling.
Combined cover for sea, air and inland multimodal transport.
KIFFA-registered multimodal-transport intermediaries.
IATA Cargo Agents and NVOCC operators.
Customs agents and logistics-system integrators.
Businesses combining storage, transport and value-added services.
| Limit | USD 1M per occurrence / USD 5M annual aggregate |
|---|---|
| Key endorsements | Professional Indemnity + KIFFA B/L extension |
| Limit | USD 500K per occurrence |
|---|---|
| Key endorsements | IATA B/L + professional indemnity |
| Limit | USD 2M per occurrence |
|---|---|
| Key endorsements | PI + system-advisory extension |
※ The above are general design examples; actual premium and limits may differ according to the risk profile of the business, past claims history and the insurer's assessment.
| Policy period | 1 year, renewable |
|---|---|
| Payment | Single or instalment payment |
| Insurers | Chubb (Marine division) · AIG · Meritz |
| Channel | Individual consultation with our broker |
| Turnaround | 5–10 business days |
If the insured event has already occurred at the time the contract is made, the contract is void. However, where the contract is void due to the company's intent or negligence, or where the company knew or could have known of the nullity before acceptance yet did not refund the premium, the company refunds the premium with interest at the policy-loan rate published by the Korea Insurance Development Institute, compounded annually, for the period from the day after payment to the day of refund.
The specific losses not covered (exclusions) are set out in each insurer's policy wording and product description; on this page, see the “Cover” tab(or the “Losses not covered” section) for the main exclusions. For other cover-specific grounds on which claims are not paid, please refer to the policy wording.
The company provides cover, in accordance with the policy, from the time it accepts the application and receives the first premium. Where the company accepts the application after receiving the first premium with it, cover also begins from the time the first premium was received.
The application must be completed by the policyholder, and the policyholder and the insured must sign it by hand. Failure to sign by hand may result in disadvantages regarding the validity of the contract. On an internet cyber-mall, an electronic signature may be used instead.
The policyholder has the right to be given and have explained the information needed about the product they wish to buy.
The insurer and N2N Insurance Brokerage must explain the important matters of the product to ordinary financial consumers.
When applying, the policyholder, the insured or their agent must disclose truthfully the facts they know regarding the questions in the application (including the questionnaire). Otherwise the claim may be declined or the contract cancelled. Where insurance is taken out by telephone or other means of communication, the duty is performed by answering the seller's questions, which are recorded, without a separate written questionnaire, so answers must be given with particular care.
If, after the contract is made, any of the following arises in respect of the subject-matter insured, the policyholder or the insured must notify the company in writing without delay and obtain endorsement on the policy.
The surrender value is the amount paid if the contract is cancelled early. Unlike bank savings, insurance combines risk protection and savings: part of the premium is paid out as claims to other policyholders who suffer accidents, and part covers the insurer's operating expenses, so the surrender value on early cancellation may be less than the premiums paid, or nil.
Under Article 59-4(1) of the Income Tax Act (special tax credit), for protection-type insurance taken out by an employee only, a tax credit of 12% of the premium paid (capped at KRW 1 million per year) is available. Tax matters may change with amendment or repeal of the relevant tax law.
Except as provided by law, the insurer and N2N Insurance Brokerage do not collect, use, inspect or provide personal data related to this contract — for its conclusion, maintenance and claim payment — without the consent of the policyholder, the insured or the beneficiary. However, for those purposes the insurer may, with the consent of the policyholder and the insured and in accordance with law, provide personal data to other insurers and insurance-related bodies.
The above is a summary and excerpt of the policy wording; for grounds on which claims are not paid and other details, please refer to the policy wording and product description.
Common risk patterns in international logistics — a five-scenario self-check
A forwarder takes on the shipper's cargo and bears responsibility for cargo loss across the whole chain — carriage, transhipment, storage, clearance and delivery.
A business issuing a bill of lading bears carrier liability under that document.
Transport agents and intermediaries such as IATA Cargo Agents and NVOCCs are exposed to cargo-loss and third-party-loss risk.
Professional work such as customs agency and logistics-system integration carries liability risk from document-handling and advisory negligence.
A 3PL providing storage, transport and value-added services together incurs different cargo liability at each stage.
The core of FFL is that a forwarder's liability splits three ways. If cargo taken from the shipper is damaged, stolen, lost or delayed during carriage, storage, transhipment or clearance, cargo liability to the shipper (Goods-Legal Liability) arises; if a third party is harmed during forwarder operations, Third Party Liability arises; and if there is negligence in professional work such as B/L issuance, document handling and advice, Professional Indemnity arises. FFL is usually designed to cover all three pillars together. Where only domestic transport is performed, carried-goods liability insurance — not FFL — applies, so choosing the wording that fits the business's transport pattern is important.
Source: (standard insurance-textbook scenario)
The wording and structure points decision-makers most often overlook
FFL is built on three pillars — cargo liability to the shipper, third-party liability and professional indemnity. Check that the policy captures your operations' risk across all three.
International and multimodal transport take FFL; performing only domestic transport takes carried-goods liability insurance. Choose the wording that fits the business's transport pattern.
Multimodal transport combining sea, air and inland has a different liability regime per leg. Check that the whole route is covered together.
The questions asked most when considering freight forwarders liability insurance (FFL)
It covers the legal liability for cargo loss and third-party loss arising as forwarders and multimodal intermediaries take on a shipper's cargo and carry, tranship, store, clear and deliver it internationally.
FFL addresses the liability of forwarders arranging international and multimodal transport, while carried-goods liability addresses the liability a domestic road-freight operator bears for cargo in transit. Performing only domestic transport takes carried-goods liability insurance.
Besides cargo liability to the shipper (Goods-Legal Liability), FFL also addresses Third Party Liability from forwarder operations and Professional Indemnity for negligence in professional work such as B/L issuance and document handling.
It is usual to design combined cover for multimodal transport spanning sea, air and inland. Check that the whole route is within the cover.
Alongside damage, theft and total loss during carriage, storage, transhipment and clearance, loss from delay can also be handled within cargo liability. The exact scope and limit should be checked in the wording.
The insurer calculates it based on the type and volume of cargo handled, routes and modes, revenue, the cover structure (cargo, third party, professional indemnity) and limit, and past claims history. The exact premium and terms are confirmed after underwriting by insurers such as AIG, Chubb, DB, Hyundai, KB and Meritz.
