Lexington Launches Truck Broker Liability Coverage. Is this a joke? To all readers and or potential buyers of this so called liability policy, please be aware of the following: 1) The purchasing of a truck broker liability policy will not relieve your company of its legal duty to pratice due care and due diligents when hiring a motor carrier, freight forwarder or freight broker(transportation service provider) 2)A truck broker liability policy most likely will not cover claims for punitive damages against your company 3)There is nothing wrong with having a stop gap liability policy. However the only coverage your company truly needs is the coverage already in place with the transportation service provider you hire.
The correct process a company is required to follow as it relates to the selection of a transportation service provider(which also provides protection against negligent hiring and negligent entrustment claims)is as follows but is not limited to: 1)Get a written agreement in place between your company and the transportation service provider you hire 2)When hiring a motor carrier be sure to verify their safety rating, loss history, equipment out of service history, the frerquency in which the motor carrier changes insurance companies, brokers, and the frequency of policy cancellation
3)Have the transportation service provider list you as additional insured. A Certificate of Insurance-Accord 25 is not a legal document or legal contract and does not list a shipper or anyone else as additional insured. If you read the front and back of the certificate it clearly validates my statement 4)Make sure your transportation service providers insurance policy and endorsements comply with the contract agreement between you and your transportation service provider. Don’t be fooled into believing that you must read all 32 pages of each and every insurance policy 5)Make contact with your transportation service providers insurance company each month to verify that the transportation service providers liability policy has not been cancelled
6)Make contact with your transportation service prodivers insurance company each month to verify the liability policy actual dollar amounts available for the payment of claims and accident defense.
This process is very cost effective to implement and manage even if you have 1000’s of transportation service providers in your data base. However insurance brokers have done a very good job over the years of impleding the process
Lexington Launches Truck Broker Liability Coverage. Is this a joke? To all readers and or potential buyers of this so called liability policy, please be aware of the following: 1) The purchasing of a truck broker liability policy will not relieve your company of its legal duty to pratice due care and due diligents when hiring a motor carrier, freight forwarder or freight broker(transportation service provider) 2)A truck broker liability policy most likely will not cover claims for punitive damages against your company 3)There is nothing wrong with having a stop gap liability policy. However the only coverage your company truly needs is the coverage already in place with the transportation service provider you hire.
The correct process a company is required to follow as it relates to the selection of a transportation service provider(which also provides protection against negligent hiring and negligent entrustment claims)is as follows but is not limited to: 1)Get a written agreement in place between your company and the transportation service provider you hire 2)When hiring a motor carrier be sure to verify their safety rating, loss history, equipment out of service history, the frerquency in which the motor carrier changes insurance companies, brokers, and the frequency of policy cancellation
3)Have the transportation service provider list you as additional insured. A Certificate of Insurance-Accord 25 is not a legal document or legal contract and does not list a shipper or anyone else as additional insured. If you read the front and back of the certificate it clearly validates my statement 4)Make sure your transportation service providers insurance policy and endorsements comply with the contract agreement between you and your transportation service provider. Don’t be fooled into believing that you must read all 32 pages of each and every insurance policy 5)Make contact with your transportation service providers insurance company each month to verify that the transportation service providers liability policy has not been cancelled
6)Make contact with your transportation service prodivers insurance company each month to verify the liability policy actual dollar amounts available for the payment of claims and accident defense.
This process is very cost effective to implement and manage even if you have 1000’s of transportation service providers in your data base. However insurance brokers have done a very good job over the years of impleding the process
My comment “Is this a Joke” was noted appropiate. If I offended anyone, it was not my intent. I hope that all will accept my sincere apology.