Wavier of subrogation, contract issues?

Some insurance carriers may have issues with Waivers, but not sure why, unless it's a special form from the shipper in lieu of the standard waiver wording. We typically charge $ 250 for the waiver.....to go along with the A/I.......which is typically $ 500.

 

As a carrier we PREFER not to give up our (and your) right to subrogate back against an entity that may be at fault.........think distributor employee forcing you to back/park here/there, and while under his direct guidance you run over another driver........the waiver prevents us/you from seeking restitution from the responsible party in some cases

 

It more than likely is coming from the attorney or risk manager for the broker.....they only change their ways when the majority of insurance carriers won't accept their specialized wording

 

My opinion, brokers are doing this now more often because they can. I notice the contracts become more favorable to the broker/shipper as the work slows down. More carriers are getting desperate, so why not transfer even more of the liability to the carrier, it lets the broker operate even cheaper so their profit margin remains stable while we (truck carriers) shoulder even more of the burden.

 

To answer your original question Stan, I have not had to deal with this recently, although I did ask my insurance carrier and they would prefer we do not waive our rights, understandably since it limits their ability to recover damages from the actual party that is liable. In the future my position will be not to sign these contracts unless there is a real good reason to accept the extra risk, either a high revenue stream or I have no other choice to pay the bills.

 

If this trend continues it will end up badly again for the truck carriers because insurance companys will have to charge higher premiums to us to off set the extra risk that the truck is taking on.
In essence to some extent we are insuring the brokers.
I own and run a number of different service bussness and have never seen the rules of the game so backwards as my car haul operation.