How can I as a freight forwarding company limit my liability?
June 7, 2024 | 50,00 EUR | answered by Anna Sontheimer
Dear Transport and Logistics Law Attorney,
I operate a logistics company and am facing the challenge of limiting my liability. Lately, I have been experiencing an increase in claims for damages from customers who allege that my company is responsible for damages to their goods. This not only leads to financial losses but also tarnishes the reputation of my business in the industry.
Currently, I have liability insurance that covers some damages, but I am unsure if it is sufficient to protect my company from potential financial losses. I would like to know what legal options exist to limit my liability as a freight forwarder and what steps I can take to safeguard against future claims for damages.
I am concerned that further incidents of damages could put my company in financial difficulty and am seeking concrete solutions to minimize this risk. I want to ensure that my company is legally protected and that I do not face disproportionately high claims for damages.
Could you please provide me with advice on how to limit my liability as a logistics company and what measures I should take to protect my business from legal consequences?
I thank you in advance for your support and look forward to your professional advice.
Sincerely,
Martina Pasche
Dear Mrs. Pasche,
Thank you for your inquiry regarding the limitation of liability in your freight forwarding company. It is understandable that you are concerned about the financial security of your company and want to take steps to protect yourself from potential claims for damages.
As a lawyer specializing in transport and freight forwarding law, I would like to provide you with some advice on how to limit your liability as a carrier. First, it is important to understand that liability in transport and freight forwarding law is regulated by law. According to § 431 HGB, the carrier (in your case, the freight forwarder) is liable for the loss or damage of goods, unless he can prove that the damage occurred without his fault.
To limit your liability, you can take various measures. One option is to agree on liability limits in your contracts with customers. These liability limits can be set, for example, in terms and conditions or freight contracts, and serve to limit your liability to a certain amount. It is important that these liability limits are clearly agreed upon and do not violate legal provisions.
Furthermore, you can include an extended liability clause in your contracts to limit your liability. This clause may provide, for example, that you are only liable for damages caused by gross negligence or intent. Again, it is important that the clause is effective and legally sound.
I also recommend conducting regular training for your employees to minimize the risk of damages. Training on the proper handling of goods, cargo securing, and compliance with safety regulations can help prevent accidents and damages.
In addition to limiting liability, it is advisable to take out comprehensive liability insurance that goes beyond the minimum legal requirements. Such insurance can provide you with additional protection and safeguard your company against financial losses in case of claims for damages.
Overall, it is important to seek advice from a specialized lawyer in transport and freight forwarding law to develop tailored solutions for your individual situation. Timely and professional advice can effectively protect your company from legal consequences and ensure long-term success in the market.
I hope this advice is helpful to you and I am available for any further questions.
Sincerely,
Anna Sontheimer, Lawyer specializing in transport and freight forwarding law
