WHY WE CARRY CONTINGENT CARGO INSURANCE.
We at Platt & Associates do our best to make sure we are using qualified carriers with adequate insurance and authority as well as a satisfactory Safestat record.
Contingent cargo insurance in addition has become very important due to all the unknowns in the carriers insurance policies.
SOME EXAMPLES ARE:
The cause of loss or damage may not be covered by the carrier’s insurance policy.
The certificate does not tell us:
· The exclusions on the policy.
· What coverage is missing?
· What type of coverage did the carrier buy? A very narrow named perils policy or a broad form all risk type of policy.
· Are there commodities that are not covered?
· What did the trucker decide not to buy? Is theft included? Is unattended theft excluded? Driver theft is almost always excluded.
The violation of a policy condition can void coverage. Often neither the driver nor the dispatcher is aware of the conditions like:
· Must the tractor be hooked to the trailer at all times?
· Is there a radius restriction?
· Must the tractor and trailer be locked?
· Is the power unit listed on the policy?
· Are there restrictions on where the truck must be parked overnight?
There are other circumstances which we may not be aware of that could prevent the trucker’s insurer from paying a claim:
· The trucker goes out of business.
· The insurance company becomes insolvent.
· The policy is cancelled, but we are not notified.
· The trucker has a high deductible.
· The trucker refuses to accept responsibility.
· The trucker refuses to cooperate with their insurer.
· The trucker’s insurer will not respond at all.
· The trucker and their insurer delay everything.