What is freight forwarders' liability insurance?
Freight forwarders' liability insurance covers a clearing or forwarding agent's legal liability to clients when goods in its care are lost or damaged, or when its errors, such as wrong documents, a missed deadline or a wrong HS code, cost a client money. It does not insure the goods themselves; the cargo owner needs marine cargo insurance for that.
Liability covers for logistics businesses
Freight forwarders' liability
Loss of or damage to clients' goods you are responsible for, errors and omissions, and some fines and duties caused by your mistakes.
Carriers' liability
For transporters: your legal liability for clients' goods on your vehicles, usually where you were negligent.
Warehouse and CFS liability
Goods held in your warehouse or yard, with limits per location and per event.
Customs bonds
The security bond KRA requires of licensed agents, issued by an insurer.
What KRA requires of customs agents
Customs agents renew their KRA licence every year and must lodge a CB 11 security bond of USD 5,000 and hold a KIFWA clearance certificate. KRA's renewal requirements include no liability insurance.
Before you buy
- Your trading conditions decide how much you are liable for: insurers will ask to see them.
- Set limits per consignment and per year that match the cargo you handle.
- Check whether errors and omissions, customs fines and duties are included or extra.
- Make sure subcontracted transport and warehouses are covered.
- Few Kenyan insurers publish a forwarders' liability product, so it is usually arranged on request; we approach those that write it.
Which cover does what?
| Cover | Who buys it | What it pays for |
|---|---|---|
| Marine cargo | The cargo owner | Loss of or damage to the goods, whoever caused it |
| Freight forwarders' liability | Clearing and forwarding agent | Claims against you for goods and errors |
| Carriers' liability | Transporter | Claims against you for goods on your vehicles |
| Goods in transit | Owner of the goods | The owner's goods moving by road or rail |
- Who buys it
- The cargo owner
- What it pays for
- Loss of or damage to the goods, whoever caused it
- Who buys it
- Clearing and forwarding agent
- What it pays for
- Claims against you for goods and errors
- Who buys it
- Transporter
- What it pays for
- Claims against you for goods on your vehicles
- Who buys it
- Owner of the goods
- What it pays for
- The owner's goods moving by road or rail
Frequently asked questions
What is freight forwarders' liability insurance?
It covers a clearing or forwarding agent's legal liability to clients for loss of or damage to their goods, and for errors such as wrong documents or missed deadlines that cost a client money. It does not insure the goods themselves: that is the cargo owner's marine or goods in transit policy.
Do clearing agents need insurance to get a KRA licence?
No. KRA's licence renewal asks for a CB 11 security bond of USD 5,000 and a KIFWA clearance certificate, but no liability insurance. Many clients and shipping lines still ask agents for proof of liability cover.
What is the difference between marine cargo and goods in transit insurance?
Marine cargo covers imports and exports by sea or air, with the road or rail legs that connect them, and is compulsory for imports. Goods in transit covers your stock moving by road or rail within Kenya and the region. Many importers need both: marine cargo to their warehouse, then goods in transit for distribution.
Why buy marine cover through Naveah instead of a portal?
A portal sells you a certificate; we compare insurers for the right cover level, check the value and terms, and help you if you ever need to claim. Our service is free to you: the insurer pays our commission, and the premium is the insurer's own rate.
Handling other people's cargo?
Tell us what you do, your turnover and the cover you need. We approach Kenyan insurers that write forwarders', carriers' and warehouse liability.
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Sources
Facts and published prices checked 18 Oct 2026; last reviewed October 2026 by Naveah Capital. Rates shown are market estimates before levies, not a quote or a promise. Naveah Capital Insurance Agency is an IRA-licensed insurance agency in Nairobi; this page is general information, and your policy wording decides your cover.
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