What happened to Eclipse Expediting?

OntarioVanMan

Retired Expediter
Owner/Operator
Umm??? Yes they do. We pay 7.50 per week per vehicle at Panther for what is called a "liability limiter". Got 10 trucks, that is 3900 a year. They say that is so the deductible stays at $1000 per vehicle. And of course you have the other side. Some nameless carriers have a deductible of 5k. Just basically different ways of picking your pocket.
holy crap at 5k deductible minus prorate on miles....basically never a payout...
 

davekc

Senior Moderator
Staff member
Fleet Owner
The 5k deductible doesn't apply to Panther. Some other carriers have that as a deductible for the liability side and for cargo insurance.
 

OntarioVanMan

Retired Expediter
Owner/Operator
for example how far the U.S is behind Ontario for having no insurance

Ontario Driving without Insurance Fine

When you receive an Ontario no insurance ticket, you face more than just the minimum mandatory fine of $5,000.00 because when you factor court costs in, it ends up being a minimum fine of around $6,280.00. You are also charged a 25% victim fine surcharge. If you are convicted of the same offence a second time, the minimum mandatory fine doubles.
 

Turtle

Administrator
Staff member
Retired Expediter
for example how far the U.S is behind Ontario for having no insurance

Ontario Driving without Insurance Fine

When you receive an Ontario no insurance ticket, you face more than just the minimum mandatory fine of $5,000.00 because when you factor court costs in, it ends up being a minimum fine of around $6,280.00. You are also charged a 25% victim fine surcharge. If you are convicted of the same offence a second time, the minimum mandatory fine doubles.
You realize you've just compared an entire Country to a single Province, right? The US has no federal laws regarding insurance of unregulated motorists. You have to look at individual states for that, each of which can vary greatly.
 

OntarioVanMan

Retired Expediter
Owner/Operator
You realize you've just compared an entire Country to a single Province, right? The US has no federal laws regarding insurance of unregulated motorists. You have to look at individual states for that, each of which can vary greatly.
Agreed
 

paullud

Veteran Expediter
NY now suspends your license for every day that you don't have insurance. The suspension goes into effect on the day specified in the letter that they send you but the day for a day "punishment" doesn't start until you physically turn in your license at the DMV. They used to allow you to pay a daily fee of around $8 per day or take the suspension but they got rid of the option. It's based solely on what the computer shows and they don't care if the plates are on a broken down vehicle that is never on the road either, ask me how I know. A few weeks to go on the suspension and I'm hoping it doesn't impact my employment ability. I don't think it will since it isn't for a moving violation but I will find out soon.
 

jelliott

Veteran Expediter
Motor Carrier Executive
US Army
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
 

crich

Expert Expediter
Fleet Manager
US Navy
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

But is it not correct that as long as the IC has the correct limits and the insurance company sends over a certificate
list the motor carrier as additional insured or certificate holder and states that the policy gives x amount of days notice in the event of cancellation then its all legit right or wrong?
 

jelliott

Veteran Expediter
Motor Carrier Executive
US Army
The OO is not the one who is contracted to the customer or shipper. They are not named as additional insured and they have no way of knowing or monitoring the insurance. As the one providing the insurance you actually have no idea what your carrier agreed to with the customer or broker. That is why the person singing the contracts as the motor carrier should truly be the one providing the insurance. VOI monitored programs provide an extra layer of protection but it is still less secure than traditional motor carrier coverage. As far as cancellation notices believe it or not it is not s legal requirement for an insurance carrier to actually send notice and thus they have no liability.
 

crich

Expert Expediter
Fleet Manager
US Navy
The OO is not the one who is contracted to the customer or shipper. They are not named as additional insured and they have no way of knowing or monitoring the insurance. As the one providing the insurance you actually have no idea what your carrier agreed to with the customer or broker. That is why the person singing the contracts as the motor carrier should truly be the one providing the insurance. VOI monitored programs provide an extra layer of protection but it is still less secure than traditional motor carrier coverage. As far as cancellation notices believe it or not it is not s legal requirement for an insurance carrier to actually send notice and thus they have no liability.

Can you tell me the difference from additional insured and a certificate holder?
 

jelliott

Veteran Expediter
Motor Carrier Executive
US Army
Off the internet:

DSCN0475.JPG It’s amazing how few business owners know the distinction between being a Certificate Holder on a vendor or sub contractor’s policy, and being an Additional Insured. There is a clear, and measurable difference between these two Certificate of Insurance functions. I will try and keep it as simple as possible.

Certificate of Insurance simple shows you proof that the “Named Insured” actually has insurance. Think of it as your sub-contractor gets pulled over, you ask him for his insurance I.D. card, (certificate of insurance) proving that he does in fact maintain insurance. That’s all a Certificate Holder really is, someone who is provided proof the sub has insurance.

Additional Insured is a whole different matter. As an “additional insured” you are actually given coverage, and have rights under the sub-contractor’s policy in the event of a future claim. Some carriers will charge the sub-contractor a premium for this privilege because they are actually conferring coverage.


Bottom line Certificate Holder is simply proof of insurance, where as Additional Insured status gives you coverage and rights under your sub-contractors policy.
 

Yowpuggy

Expert Expediter
Owner/Operator
he “Certificate Holder” is going to receive notification of changes or cancellation in coverage. However, “Additionally Insured Endorsement” provides the party with your insurance coverage and the rights to your defense under such coverage. The bank which finance your vehicle would be a certificate holder.
 

jelliott

Veteran Expediter
Motor Carrier Executive
US Army
No law that says an insurance company has to notify anyone of cancellation or change. So that is not a for sure. People think it is, but it isn't.
 

jjtdrv4u

Expert Expediter
It appears that from all this, the multi-carrier model is seeing its last days.

If you are an independent contractor working with one of those, you might review your options and consider one of the big companies that pay for all their IC's auto liability insurance.

On the other hand, there are an awful lot of companies out there that still require their IC's to pay for all their own insurance. This includes companies that are not of the multi-carrier variety, (and there are a lot more of them in this business than the half dozen or so monoliths that everyone thinks of when this business is mentioned). So, I doubt the current laws will be changed that allows IC's to pay for their own insurance. The mechanisms for conveying this insurance information to the pertinent parties, however, still needs to be improved by today's technologies.

Afterall, insurance is a "necessary evil", and it may be the only thing out there to weed out the bad boys from the good;
(while as usual the good boys end up paying more money for it, no matter what).
 

Murraycroexp

Veteran Expediter
Yes. Insurance is changing every day, for expediting. Some change with it a year or two ago. Some have not changed yet. But eventually everyone will change. The market is in the middle of making this happen. Most of the market isn't opening its eyes to the change yet but some of the market is right on top.
Either get ON the wave or get swept under by the wave.
It will be a choice everyone makes eventually.
 
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