Adding broker to liability insurance?

Discussion in 'Ask An Owner Operator' started by AM77, Oct 12, 2011.

  1. AM77

    AM77 Light Load Member

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    Is it necessary for a carrier to add a broker on their general liability policy?:mconfused:
     
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  3. Mommas_money_maker

    Mommas_money_maker Road Train Member

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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.
     
  4. Moving on Down the Road

    Moving on Down the Road Light Load Member

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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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  5. josh.c

    josh.c Road Train Member

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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.
     
  6. bullhaulerswife

    bullhaulerswife Forum Leader/Admin Staff Member Administrator

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    If your pulling the brokers trailer (which we have) then they will require you to cover the trailer as a non owned. They usually tell you more than its worth. Which doesn't do a lot of good except take more money out of your pocket and put it in the insurance companies pocket. :biggrin_2557:
     
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  7. High Desert Dweller

    High Desert Dweller Medium Load Member

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    Brokers, by law, cannot have a vested interest in the cargo unless they are functioning as a Freight Forwarder, which requires additional authority. And, I have never had a broker request that they be listed as additional insured. They're all certificate holders.

    This is bad information.
     
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  8. DonBotelli

    DonBotelli Bobtail Member

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    Had brokers requested to be listed as additional insured. I'm pretty new in the industry, but it happened.
     
  9. AM77

    AM77 Light Load Member

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    Sep 17, 2011
    Chicago, IL
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    thank you all for replies
     
  10. BigBadBill

    BigBadBill Bullishly Optimistic

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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.
     
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  11. AM77

    AM77 Light Load Member

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    Sep 17, 2011
    Chicago, IL
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    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, Carrier’s employees or subcontractors, or Carrier’s
    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 Carrier’s 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 Broker’s 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. CARRIER’S 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 Carrier’s
    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 :biggrin_2552:
     
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