Annual Meetings-Lessons from Losses Motor Truck Cargo

Pdf Summary

The document discusses a case study in the transportation and logistics industry where an insured company acted as both a broker and a motor carrier, leading to confusion in identifying responsibilities and liabilities in a shipment that resulted in damages. The insured company, which had both broker and motor carrier authority, tended to broker flatbed trailer loads to other companies due to not having the equipment. When a shipment with transit-related damages occurred, it raised questions about the insured's role - broker or motor carrier. The analysis considered various factors like the company's website description, handling of previous shipments, contractual agreements, and documentation like bills of lading. The document highlighted the importance of understanding an insured's business operations thoroughly to ensure appropriate insurance coverages. It emphasized that the carrier/broker distinction is complex and requires detailed knowledge of the company's activities. The document also outlined considerations for insurance coverage related to the insured's roles and responsibilities in transporting goods. Ultimately, it pointed out potential gaps in coverage under contingent cargo or motor truck cargo liability policies based on the insured's actions as a broker or carrier. The case study serves as a lesson for insurers and insured parties to clarify roles and understand insurance implications in dual-role scenarios in the transportation and logistics sector.

Asset Caption

Presented by :
Teresa Dooley, Hill Rivkins LLP

Keywords

transportation and logistics industry

case study

insured company

broker authority

motor carrier authority

shipment damages

carrier/broker distinction

insurance coverage

dual-role scenarios

transporting goods