A freight forwarding client of ours recently encountered a large general liability claim that came as quite a surprise. Here's what happened:
The forwarder's customer was exporting a large commercial generator, and asked the forwarder to make arrangements to have the unit picked up and delivered to the forwarder's premise for temporary storage. The forwarder contracted with a trucking company that is known to have expertise in handling oversized cargo. Upon arriving at the forwarder's loading dock, the driver misjudged a curb and the generator fell out of the flatbed. The unit sustained $350,000 in damage. The trucking company, who had accepted the cargo without invoking any limitations of liability, took responsibility and paid the owner of the generator the full $350,000.
The surprise came when the trucking company then sued the forwarder for the full $350,000, alleging that it was poor design of the forwarder's loading dock area that caused the driver to have the mishap. Although, this same driver had delivered to the location many times in the past without incident. |
How can I avoid this from ever happening to my company?
Never work with a carrier who refuses to waive subrogation rights against your company for liability they themselves have created. This is especially important when dealing with heavy equipment which can be high in value and dangerous to handle.
If you hire a trucking company for their expertise in moving heavy equipment, they should be able to take responsibility for such. If they refuse to sign a subrogation waiver, you have the option to give your business to one of the many reputable carriers who will. You'll be delighted to learn how quickly most carriers will accommodate you, and you will avoid dealing with costly problems for you and your clients that someone else caused.
If you have questions on this or other topics related to insurance for logistics and supply chain operations, please contact your Roanoke Trade representative or marketing@roanoketrade.com. |
