Hello, all. I was wondering if anyone could tell me why a freight brokerage wouldn't handle a liability claim. I tried Googling it but couldn't find anything useful but I might be wording my search wrong....I have a carrier that hit my customer's gate and my main office said the customer has to file the claim themselves. This is my first liability claim so I don't know if this is common with brokerages or what...Any feedback would be appreciated!
Liability Claims
Discussion in 'Freight Broker Forum' started by kgray520, Aug 28, 2024.
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Oh yeah, I definitely agree it's on the carrier. But I don't want to drop this in my customer's lap without helping as much as I can from my end so he doesn't feel deserted. He's a newer customer for me and I want to set a good precedent with him. So it's just weird I guess, not handling this myself.
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If I understand the situation right. It’s between the carrier and customer.
The brokerage doesn’t want to give the idea that they are in any way responsible in case the claim is denied.
@JimmyTwoTimesBean Jr. Thanks this. -
That makes sense. I guess I just never really thought about it because it's never happened with one of my carriers before.Bean Jr. Thanks this.
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The carrier is responsible for the damage.
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These are always a little bit tricky. By law your brokerage likely isn't liable for property damage caused by the driver (or even cargo damage) unless explicitly spelled out in the contract, and most contracts are going to focus on cargo claims, not property damage. Your corporate office doesn't want to get involved because they want to avoid a scenario where the carrier doesn't pay and your customer goes after you, and you end up paying out of pocket for a mistake a driver made.
My two cents: I'd call your customer, explain that while cargo claims are often filed by the brokerage against the carrier on behalf of shippers, typically in the event of property damage the shipper/receiver goes after the carrier and their insurance directly. Let the customer know you will send them all the carrier contact & insurance information, and if for some reason his team has problems recovering to reach out to you and you will run it up the flag pole to see how you and your team can help resolve the issue.wis bang, kgray520, PPLC and 1 other person Thank this. -
These guys get it.86scotty, JimmyTwoTimes and Iamoverit Thank this.
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The carrier,(MC) is responsible for cargo insurance period. If damage is not cargo related and strike is by trailer then it's liability falls on the trailer owner under it's liability policy. The grey area is when an owner operator leases the carriers trailer . By law, any carrier who leases a trailer to an owner operator must register and insure for liability and cargo. If owner operator ownes trailer then it's his responsibility. What is being practiced illegally without much complaints are more and more carriers are requiring leased owner ops to pay for very expensive cargo liability. These carriers usually pay a higher percentage in brokerage as a ploy to impress a new hire into thinking he's getting paid better than others. This is a bit misguided as the small amount of the extra percent load will not cover the premium for cargo which now is common for liability of 2 million. Bottom line. The motor carrier agrees to transport and insure for losses to cargo no matter who pulls it. The motor carrier can use whom ever they chose to haul it but are responsible for that load. A fed ex driver that hits a gate doesn't pay for the gate, FedEx does. The owner of a vehicle/trailer is liable.wis bang Thanks this.
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