GAA increases minimum requirements for Risk Managed designation

The Global Affinity Alliance has created a higher-tier of trust within the group, the Risk Managed Program.

We have recently enacted changes to the program raising insurance policy requirements for companies who wish to participate and who are permitted to use and display the RM logo.

The reasons for this change are two-fold. First, we wish to strengthen the program. Second, we wish to ensure the validity of the RM logo.

To clarify a company’s responsibility, let us begin with defining the term “insurance policy.” It refers to insurance coverage for your freight forwarding logistics, services and operations. It consists of, but is not limited to, forwarding as an agent or principal, by sea, air or both, NVOCC services, Custom brokerage, etc. and warehousing services.

The following are the new minimum requirements for the program:

1. Coverage must be for Cargo Legal Liability (coverage is not for cargo value but legal protection for your company) including Errors & Omissions, Fines and Penalties and Defense.
2. Limit for both Cargo Legal Liability and Errors & Omissions (including Fines and Penalties) must not be less than $250,000 on any one claim, or $1,000,000 for any one claim if the limit is in the aggregate.
3. Coverage must be in respect of all the member’s freight forwarding operations. This means it is not only limited to, for example, the member’s “house bill and/or airway bill.”
4. Defense Coverage must be included and should be on a “1^st Dollar” or “ground-up” basis, not subject to a deductible/excess.
5. The annual insurance must be current and not have expired.

Global Affinity Alliance is always working towards providing the tools for our members to operate in the safest and most trustworthy atmosphere. We feel as if this was what sparked the need for change.

In order to maintain your “Risk Managed” logo and status, you must submit proof, certified by your insurer, that your coverage either meets or exceeds the above requirements. This applies for either the purchase of a new policy or the expiration of your current policy.

Global Affinity Alliance reserves the right to determine the validity of any policy or policy information submitted, and grant or deny awarding the RM logo.

For questions or concerns regarding these new requirements please contact Rupa at rdedhia@globalaffinityalliance.com.