Azerbaijan’s new law on freight forwarding activities lacks a comprehensive insurance coverage mechanism, Aytan Akhundova, head of the drafting group for the “EU Business Climate Report: Azerbaijan 2025/2026,” stated during a Q&A session at the EU-Azerbaijan Business Forum in Baku, Report informs.
“The recently adopted law in the field of transport forwarding in Azerbaijan requires refinement regarding insurance coverage. This document does not envisage provisions that would regulate the mandatory possession of an insurance policy for companies engaged in logistics and freight forwarding activities,” Akhundova noted.
She noted that despite the presence of a number of positive business-enabling provisions in the new regulatory act, the lack of clear regulation in insurance creates significant risks for market participants.
“Under current conditions, in the event of damage or loss of cargo during transportation, carriers themselves are forced to bear full financial responsibility, deprived of the opportunity to secure full insurance protection in advance. Market participants are convinced that introducing regulations on mandatory insurance policies, as well as broader participation of the country in international industry conventions, are necessary to protect the interests of domestic carriers and strengthen the competitive position of Azerbaijan’s logistics sector,” the expert added.