The contracts between shippers and carriers have become more complicated over the past few years. The end result is that who has liability when things go wrong can be messy. Transportation liability programs offer protection with a knowledgeable agent to help you navigate your business’ specific exposures.
Myth #1: Your Broker Covers Anything
The Moving Ahead for Progress in the 21st Century Act of July 2012 does require brokers to have the funds to cover the costs of shipments and lawsuits regarding shipments. While beneficial to keeping the business moving, the act does not eliminate the shipper’s liability.
Myth #2: Use CSA 2010/SMS as Law
While many transportation companies are using CSA scores to verify carriers, it is not actually a law. Most states do require carriers to be credentialed using SMS methodology. Speak with your insurance agent to determine what they require regarding CSA 2010/SMS.
Myth #3: Having Insurance Eliminates Worries
Having insurance offers protection against a variety of liabilities, but it may not cover everything. Depending on the policies you have, your plan may not cover the carrier or the shipper and their liabilities. Your liabilities may not disappear simply because the other partner has insurance.
While this is not a comprehensive list of myths, transportation liability programs offer an array of coverage options. Cover yourself, your employees and your cargo with the right set of policies.