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.

We cannot rely solely on the trucker’s certificate of insurance to protect our shippers or ourselves. Any one of these circumstances could eliminate insurance coverage for a loss or damage claim.

We came to the conclusion that we need quality contingent cargo insurance to address the unknowns and the circumstances that interfere with the settlement of a legitimate loss or damage claims.