Understanding customs bonds for commercial imports

Hi Ana, Hope you’re doing well today. Recently, I was talking with a client who didn’t know the full spectrum of services we provide. So, I thought I’d reach out to you and share a little more about my company, should you also be unaware of the full range of services we provide. Who We Are Global Insurance Network is a South Florida-based insurance agency specializing in insurance offerings for those in the international trade community. With 32 years of experience, we stand strategically positioned to serve the trade community because of our knowledge of its unique strengths and challenges. We work with freight forwarders, NVOCC, importers, exporters, customs brokers, shippers, and other types of businesses related to the logistic industry. We provide insurance solutions they need for: Property and casualty Insurance for your premises (normally required in lease) Cargo Insurance including Warehouse Coverage Customs Bonds Freight Legal Liability Including E&O Insurance OTI FMC & NVOCC bonds And more! Whether a one-time shipment or ongoing cargo, bonds, freight liability, E&O, or commercial package policies, our team customizes insurance products to meet all of our client’s diverse needs. How We Can Help Global Insurance Network is committed to helping you navigate and negotiate within the highly specialized international trade insurance marketplace, giving you the ability and confidence to compete on an equal basis, regardless of your expertise or current market share. Our mission is to provide you with a level of professionalism, expertise, and service unmatched anywhere in the world. When I founded Global Insurance Network back in 1990, I wanted to create a happy place for people to work, an environment that people were proud to be a part of. Over thirty two years later, I’m pleased to say we have done just that—and I couldn’t be more confident in our current team of industry experts. Our fully bilingual professional staff understands and embraces the diversity of our multicultural environment. And our close relationships with various London and domestic markets allow us to provide you with the insurance you need at the best rates available. If you’re interested in this type of service and support, please give me a call so we can set up a time to discuss your needs and go over any questions you may have. We’re here when you need us.

I hope you’re doing well this week. I thought I’d take a minute to touch base about freight legal liability insurance. As I review data rolling in from last year, it’s clear just how important it is for companies offering logistics services to have the right coverage. Consider the following: According to the World Shipping Council, ships transport about 226 million containers each year, with cargo valued at more than $4 trillion. Shipping companies lost an average of 1,382 containers between 2008 and 2019. Nearly double that amount, the highest in seven years, went overboard over a two-month period from November 30, 2020, to January 31, 2021, trade magazine American Shipper reported. This increase in losses can be attributed to things including container ships getting larger each year, thus carrying more cargo, winter winds being historically strong, and product demand surging as people spent time at home during the pandemic. Container ships are getting bigger every year , which means they're carrying more cargo. Winds last winter were stronger than usual. In fact, going back to 1948, last winter had the second strongest winds on record. At the same time, demand surged for products as people spent more time at home during the pandemic. So why are freight legal liability policies so important? They kick in if a client has elected not to purchase cargo insurance from you and/or they have their own insurance policy--and in this instance, their company is subrogating yours. Alternatively, freight legal liability comes into play if a client does not purchase cargo insurance and chooses to have none in place, thus accepting the risk for the full commercial value of their goods should something happen to their shipment. In all cases, the client would receive a limited reimbursement per their mode of transportation. A freight legal liability policy will cover the logistics provider from the following: Damaged goods based on the terms and conditions of the HBOL Subrogation claims by client’s insurer Errors or omissions made outside of your oversight Warehouse damages pre- and post-shipping (only if the client purchased coverage and has a warehouse) Motor truck cargo loss or damage (only if the client purchased coverage and owns trucks) The big picture is this: a freight legal liability policy covers you in the event you’re held legally liable for a shipment you handled by air, ocean, rail, or truck. This differs from freight cargo insurance, which one must purchase if they want 100% of the value of their goods protected. I hope these are helpful insights into how a freight legal liability policy can protect your assets. If you’d like a quote or would like to discuss this in more detail, feel free to reach out. Hope to connect with you soon.