Liability Claims

Discussion in 'Freight Broker Forum' started by kgray520, Aug 28, 2024.

  1. kgray520

    kgray520 Bobtail Member

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    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!
     
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  3. Judge

    Judge Road Train Member

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    it’d be on the carrier that hit it, not the load broker.
    If something wrong with load the. you deal with him.
     
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  4. kgray520

    kgray520 Bobtail Member

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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.
     
  5. 062

    062 Road Train Member

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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.
    @JimmyTwoTimes
     
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  6. kgray520

    kgray520 Bobtail Member

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    That makes sense. I guess I just never really thought about it because it's never happened with one of my carriers before.
     
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  7. bad-luck

    bad-luck Road Train Member

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    The carrier is responsible for the damage.
     
  8. wichris

    wichris Road Train Member

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    Just give all the carrier and their insurance info to your customer.
     
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  9. JimmyTwoTimes

    JimmyTwoTimes Medium Load Member

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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.
     
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  10. PPNLE

    PPNLE Road Train Member

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    These guys get it.
     
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