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Errors and Omissions Insurance
Errors and Omissions Insurance can protect a freight broker from the consequences of not only an error, omission or negligence but also an inaccurate declaration or a breach of contractual or professional obligation.
This basic principle is as follows: the insurer handles the costs of defending the freight broker being sued, whether the claim is justified or not. Damages and interest will also be covered by the Errors and Omissions policy if the freight broker is legally obligated to pay them because of an error, omission or fault that he committed in the exercise of insurable services. This coverage, for example, can cover an oversight or erroneous instruction given by the freight broker to his sub-contractor.
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