Email example today:
We would like our Alliance partners to know that we now offer the following services:
Attention Brokers!!!!
There is a trend in the expedited community that is a cancer to all of us!
I have watched as our industry has slowly been diluted into the “cheapest rate gets the freight” model. Unfortunately, the only way for a carrier to continue to lower and continue lowering their rate, is to cut corners.
Here’s what happens…
Broker post a load, gets a (cheap) rate from Carrier. Broker ask for the insurance cert, gets it and it looks perfect ($1 million auto liability/$100k cargo). Box checked for “scheduled autos/hired autos/non-owned autos”. (I have personally found many carriers with a “scheduled auto” policy to only have ONE unit listed on their policy! Yet they show multiple units (sometimes 100’s) on the Sylectus board.)
Broker has “contingent cargo” coverage and everything looks to be in place.
Carrier is awarded the shipment. He gets his “Independent Contractor(IC)” on the load (who he contracts on a load by load basis). This “IC” has his own insurance policy, which has nothing to do with the insurance cert the broker got from the carrier to begin with. Hopefully that “IC” has a commercial policy with the right type of coverage and limits, in a lot of cases they do not! You might be putting your customers freight on a vehicle that has no more coverage than what you have on your personal vehicle.
**Here’s the problem…if that truck gets into an accident, God forbid kills someone….who will be held liable? The carriers “hired and/or non-owned” policy, will it pay if that insurance company didn’t know the Owner Op (IC) was hauling for the Motor Carrier? The Motor Carrier was committing insurance fraud if he didn’t list him and the insurance company didn’t know.
The brokers “contingent cargo” will not pay.
………..WHY?
The carrier has a contract with the “IC”, that says they will carry the same limits on their policy that is on the carriers policy. That didn’t happen, so carriers insurance will not pay. Broker hired a carrier that was not properly insured, brokers insurance will not pay.
Now, you have a personal injury lawyer knocking on EVERYONE’s door and I mean EVERYONE! From the driver to the owner of the customer setting up the shipment to begin with (including both the dispatcher’s from the broker and the carrier…YES dispatchers, you will be held liable as well).
This is not a scare tactic, this is really happening everyday in our industry! And most brokers and shippers are completely unaware of the insurance fraud and rogue carriers hauling their freight! You can NOT say you didn't know...you have been warned!
This is NOT a SYLECTUS problem, they are a software company and should not be held responsible for vetting YOUR carriers!
If we can be of assistance, please do not hesitate to contact us by phone (479) 271-9360 or email
[email protected].
Steven Barrett
BARRETT DIRECTLINE DELIVERY SERVICES INC
(479) 271-9360