Adding broker to liability insurance?
Discussion in 'Ask An Owner Operator' started by AM77, Oct 12, 2011.
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Not sure but I do know that safety has to encompass all stakeholders (per some crazy dot regulation) so maybe so. I think that would be an awesome question to call OOIDA with as they would have a definite no BS answer.
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Almost 30 years of insurance experience and the answer is yes. They have a vested interest in the cargo you have on board and the contract to haul that cargo is between the broker and shipper. Heaven forbid that something happens but if it does the attorney (and you can bet there will be at least one) will go after any name associated with the load and that I comes from 10 years of experience in law after insurance. And the brokers won't put you on a load until you give them a certificate of insurance showing them as additional insured.
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I haven't run into any brokers that require general liability yet. I have general because I have a direct customer that requires it. There's a difference between naming broker a certificate holder and an additional insured. I've also never had a broker ask to be named an additional insured, but I've heard that a few do-they ALL want to be named a certificate holder. Bottom line-dont ask a bunch of yahoos on a forum legal questions, talk to your insurance agent.
Mr. PlumCrazy, AM77, bullhaulerswife and 1 other person Thank this. -
This is bad information. -
Had brokers requested to be listed as additional insured. I'm pretty new in the industry, but it happened.
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thank you all for replies
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Fedex asked to be named as additional insured and I said no. The better insurance companies will not allow it unless you can show a good reason. Biggest issue is that you cut your coverage in half if in an accident while hauling for them.
I have one direct customer that I do this with and they are paying me well. But would never consider doing it with a broker. Biggest issue is that many brokers do not have contingent insurance. -
5. INSURANCE LIABILITIES PROTECTION
Carrier agrees to assume all liability for, and hereby agrees to indemnify, defend and hold Broker
or its customers harmless for all expenses (including expenses of defending against legal
proceedings by any party, including Carrier, Carriers employees or subcontractors, or Carriers
Insurer), damages suits or claims or injuries to or death for any and all persons and for loss of or
damage to property, in whomsoever belonging, arising out of Carriers activities and performance
of duties hereunder. Carrier agrees to purchase and carry during the term of this Agreement and
any extensions thereof, policies of bodily injury and property damage liability insurance, including
blanket contractual coverage, and naming Broker as an additional named insured, in the amount
of $2,000,000 combined single limit per occurrence. Carrier agrees to obtain workers
compensation insurance required by the law of the states in which the transportation service shall
be performed, protecting and covering Carrier and its employees in such amounts as are required
by the statutes of said states. Copies of insurance policies, with all riders, endorsements, or other
attachments or arrangements evidencing these limits must be provided Broker before any
shipments will be tendered to Carrier.
6. PROPERTY DAMAGE AND CARGO LOSS
Carrier shall have the sole and exclusive care, custody and control of all Brokers customers
property from the time it is delivered to it for transportation until delivery to the consignee. The
Carrier assumes full responsibility for any and all damage to said property while in its care,
custody, or control. Consistent herewith, Carrier agrees to purchase and carry during the term of
this Agreement and any extensions hereof, policies of all risks cargo insurance, and naming
Broker as an additional named insured, insuring each shipment carried, warehoused, or stored
hereunder against all risk of physical damage in the amount of its full invoice value, plus
applicable paid freight charges.
7. CARRIERS CARGO LIABILITY
Carrier shall be liable to Broker and its customers for loss or damage to any property transported
under this Agreement. Such liability shall begin at the time cargo is loaded upon the Carriers
equipment at the point of origin and until said cargo is delivered to the designated consignee at
destination, or to any intermediate stop off party. The liability shall be for the full value of the item,
which shall be understood to mean the invoiced cost of the lost or damaged item(s). With respect
to any and all losses or damages due Broker from Carrier, Broker shall have the right to deduct
those damages from any other monies due Carrier, whether or not it is related to the load/contract
that was the cause of said damages. Carrier shall be liable as a common carrier as defined at 49-
CFR 11707. Broker shall file any cargo claim with Carrier within one (1) year of the scheduled
date of delivery
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