Forwarders' Liability Insurance*

On April 23, 2024, in the context of an action brought by a Forwarder against its Insurer concerning the liability insurance contracted between them, a Judgment was issued by the 7th Section of the Lisbon Court of Appeal, according to which it was decided that a Forwarder acting in the capacity of a Carrier, commonly known as NVOCC [an acronym for Non-Vessel Operating Common Carrier (1)], does not retain its position as a Forwarder while simultaneously acting as a Carrier.

Therefore, any liability arising from a transport in which the Forwarder acts as an NVOCC is not covered by the Forwarders' liability insurance.

Thus, Forwarders who perform Transport while acting as NVOCC should consult their Insurance Companies to avoid the exclusion of their coverage in these specific cases.

If you have any questions regarding this or other matters, or if you require further clarification, please contact us here.

* Under Portuguese law
(1) Which can be defined as an operator that carries out typical activities of a shipowner but does not own any vessels