The purpose of carrier's liability insurance is to cover carrier's and forwarder's liability regulated by national and international legislation and conventions.

Freight forwarders are exposed to a broad variety of liabilities in respect of the services they provide to their customers. Different liabilities are applicable for transit by sea, air, road or rail.

However, the modern freight forwarder need to accept other liabilities, as for an example, liability for operators of temperature-controlled equipment, warehouse owners and intermodal operators. Third Party Logistics and Internet Businesses are also becoming more frequent responsibilities for freight forwarders.