My forwarder says the shipment is covered. Is it insured?

Probably not. What is usually meant is that the forwarder trades under standard conditions which limit their liability, and that they carry liability insurance behind those conditions. That is a cap on what they might owe you if they are at fault — not cover for your goods.

What about "carrier's insurance" offered at booking?

Ask what it is. Some is a genuine cargo policy placed through the forwarder acting as an intermediary; some is a limited liability extension that raises the cap and remains fault-based. The test is whether a certificate of insurance is issued, naming an insurer and a clause level.

Does a forwarder need to be licensed to sell me insurance?

To arrange or advise on insurance, yes — insurance distribution is a regulated activity in most jurisdictions, requiring authorisation or a producer licence. A forwarder arranging cover under an open policy they hold is a common and legitimate arrangement; it is still regulated.

“My forwarder said it’s covered”

Almost always this means the forwarder trades under standard conditions that limit their liability, and carries liability insurance behind those conditions. It is a cap on what they might owe you if they are at fault. It is not cover for your goods.

Trading conditionsFault-basedCapped by weight

Two different things, side by side

	Forwarder liability	Cargo insurance
What it is	A limit on what the forwarder owes if the forwarder is at fault.	A contract to indemnify you for insured loss, whoever was at fault.
Who has to be to blame	The forwarder, or somebody they are answerable for. No fault, no payment.	Nobody. A container lost overboard in heavy weather is nobody's fault and is still covered.
How much	A capped figure, normally per kilogram, with an overall ceiling per transaction.	The agreed insured value on the certificate, less the deductible.
How long it takes	As long as the argument takes, and there is usually an argument.	As long as the adjustment takes, and the burden is on the insurer to point at an exclusion.
General average	Not covered. You post the security yourself.	Covered at (A), (B) and (C) alike; your insurer guarantees the average bond.
What it costs	Included in the rate, which is why it feels free.	A rate per 100 of insured value, plus any minimum premium.

A real set of conditions

The British International Freight Association publishes Standard Trading Conditions used by much of the UK forwarding industry. Under the 2021 edition, clause 26 limits liability to the least of: the value of the goods of the whole consignment; 2 SDR per kilogram of the gross weight of the whole consignment; or 75,000 SDR — and less still where the actual financial loss is smaller. The SDR value is calculated as at the date the claim is received in writing.

Two SDR a kilogram is the same order as the Hague-Visby cap, which is to say a fraction of the invoice for almost any manufactured goods. Other national associations publish their own conditions and BIFA revises its own periodically — check which edition and which association your forwarder actually trades under, because it is printed on the back of their paperwork and nowhere else.

How that compares with the carriage conventions →

The question that settles it

Ask for the certificate. A contract of insurance produces a document naming an insurer, a clause level, a sum insured, a deductible and a transit. A limitation of liability produces a clause number on the back of a booking confirmation. If nobody can hand you the first thing, the goods are not insured.

Common questions

My forwarder says the shipment is covered. Is it insured?: Probably not. What is usually meant is that the forwarder trades under standard conditions which limit their liability, and that they carry liability insurance behind those conditions. That is a cap on what they might owe you if they are at fault — not cover for your goods.
How much is a forwarder's liability worth?: Under the BIFA Standard Trading Conditions 2021, clause 26 limits liability to the least of the value of the goods, 2 SDR per kilogram of the gross weight of the whole consignment, or 75,000 SDR — and less again where the actual financial loss is smaller. Other national association conditions differ, but all of them cap by weight.
What about "carrier's insurance" offered at booking?: Ask what it is. Some is a genuine cargo policy placed through the forwarder acting as an intermediary; some is a limited liability extension that raises the cap and remains fault-based. The test is whether a certificate of insurance is issued, naming an insurer and a clause level.
Does a forwarder need to be licensed to sell me insurance?: To arrange or advise on insurance, yes — insurance distribution is a regulated activity in most jurisdictions, requiring authorisation or a producer licence. A forwarder arranging cover under an open policy they hold is a common and legitimate arrangement; it is still regulated.

Get an indicative premium What a certificate shows

Sources

BIFA conditions are one national association's terms and are cited as a concrete example. Your forwarder may trade under a different association's conditions, a different edition, or its own.

This page summarises the instruments above. It is not the wording, and it is not legal advice. Where a summary conflicts with a convention text, a policy wording or a certificate, that document governs.

InsuranceScanner is an insurance intermediary, not an insurer — see the Terms for our role. Nothing here is a personal recommendation that a particular cover, sum insured or deductible is suitable for you. Where anything on this page conflicts with the certificate, policy schedule or wording issued by an insurer, that document governs.