Who is supposed to pay the liability and cargo insurance?
- Thread starter RoadHouse
- Start date
Murraycroexp
Veteran Expediter
Average days to pay so far for this fiscal year (1/1-8/6) for broker accounts only is currently 36.6 days. We write checks on Friday each week, for any checks in by then, then we mail them. So add several days to a week or 10 for say a check in on Monday and mailed on Friday and received by the driver by snail mail.
We're close to adding direct deposit so that will shave all but a day or two off the snail mail time.
And that 36.6 day average is up from last year's 31.48 day average.
But shortest AVERAGE days for a broker account of ours this fiscal is 8 days. Longest AVERAGE days to pay for a broker account this fiscal is 59.64 days.
But we've had them out as far as 88 days I think recently.
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I don't see any extra risks Xiggi....its the same customers that we carriers do....it might even be ours!! he just pretty much bids on overflow loads where we might not have a truck....pure Sylectus loads
Not many run purely off sylectus. I'm sure Murry has other contacts from his years in business. It's a legit question I've never worked anywhere that I would even know if the carrier wasn't paid.
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So basically you don't factor but the individual truck is paid after the customer pays? So the truck is actually carrying the receivable vs. the carrier doing it? OVM seems to have all the answers on this 
My other concern would be....
The insurance cert provided to the customer, broker or partner carrier is not the actual certificate or policies covering them if the unit provides their own insurance. As a carrier we can monitor another carriers insurance. But we would have no way to see or ensure that the insurance provided to cover the individual units met the same standards of limitations or proper coverage. The contracts signed by the carrier to customers, 3pls and bid boards normally require a copy of the insurance the carrier is placing the freight under and most want to be listed as an additional insured on the policy certificate. Thus the carrier policy is not the actual policy that is ensuring the freight during movement. Ugggh.
My other concern would be....
The insurance cert provided to the customer, broker or partner carrier is not the actual certificate or policies covering them if the unit provides their own insurance. As a carrier we can monitor another carriers insurance. But we would have no way to see or ensure that the insurance provided to cover the individual units met the same standards of limitations or proper coverage. The contracts signed by the carrier to customers, 3pls and bid boards normally require a copy of the insurance the carrier is placing the freight under and most want to be listed as an additional insured on the policy certificate. Thus the carrier policy is not the actual policy that is ensuring the freight during movement. Ugggh.
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Murraycroexp
Veteran Expediter
Correct. Although we've been in contact with another big carrier about their "board", as of right now it's all Sylectus subscriber's overflow. Exactly as you described.
Murraycroexp
Veteran Expediter
Our "leg up" was the 9 years I was an ops manager at Rush. For about 7-8 of those years I networked with most of these brokers, 3PLs & carriers that we now work with daily. It was a huge help to at least "open the doors". Then me bustin my ar$e on the road and proving our drive for 2 years helped solidify the trust factor that is required to do this.
Now we have drivers that perform to their own, and our, really higher standards. Not rocket science. Just performance and drivers that CARE about quality work.
Murraycroexp
Veteran Expediter
At about day 90, we would go ahead and pay our driver for the load and we would go after the broker's bond.
If the bond has already been exhausted and the broker is in bankruptcy, we are probably out the money but would seek advice from our attorney.
westmicher
Veteran Expediter
WOW!!! The truck gets to be everybody's bank???
I would never want to be in that situation with my trucks!
I can't imagine wondering when, or if, I would ever get paid... but I would still have to pay my drivers!
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Murraycroexp
Veteran Expediter
So basically you don't factor but the individual truck is paid after the customer pays? So the truck is actually carrying the receivable vs. the carrier doing it? OVM seems to have all the answers on this
My other concern would be....
The insurance cert provided to the customer, broker or partner carrier is not the actual certificate or policies covering them if the unit provides their own insurance. As a carrier we can monitor another carriers insurance. But we would have no way to see or ensure that the insurance provided to cover the individual units met the same standards of limitations or proper coverage. The contracts signed by the carrier to customers, 3pls and bid boards normally require a copy of the insurance the carrier is placing the freight under and most want to be listed as an additional insured on the policy certificate. Thus the carrier policy is not the actual policy that is ensuring the freight during movement. Ugggh.
Good point. I'll start sending the policy numbers for all the policies that fall under our authority. They're all $1M, $100K, with us as add ins. So far, all our guys are with CIS, except one. And he's with Progressive Direct and meets the same requirements we have.
Thanks for bringing that to my attention.
Every day a little smarter.
But at the end of the day, the freight is covered by the certificate that the truck has an effect with the cargo policy the truck has an effect. So long story short, the freight is covered. Call us for a claim? I'll send you the certificate that covered your load.
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Murraycroexp
Veteran Expediter
WOW!!! The truck gets to be everybody's bank???
I would never want to be in that situation with my trucks!
I can't imagine wondering when, or if, I would ever get paid... but I would still have to pay my drivers!
Then it's a good thing your carrier doesn't require that.
RoadHouse
Active Expediter
All I know is panther pays me a dollar plus per mile and they don't take any deductions from my paycheck for cargo insurance. Who would allow a carrier to deduct their paycheck for cargo insurance when they are only getting paid 90 cents per mile? That is a bottom feeder rate.
RoadHouse
Active Expediter
Also, isn't working with a whole bunch of carriers the same thing as the multi-carrier model as far as keeping track of insurance is concerned? A lot of carriers I see on safer web are only displaying primary liability limits of 750K, when in actuality they have signed contracts with partner carriers to provide a million dollars worth of primary liability insurance. How can you regulate that without looking for it all of the time? Also, I know some insurance companies who will check the "all autos" or "hired autos" box for the carrier even though they do not provide this type of insurance. I don't think Progressive provides blanket insurance policies such as this.
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.70 + .23= .93....hey that's what my last 2 loads averaged...did someone change my decals whilst I was sleeping?......LOL
Oh....your in trouble now.....wait your always in Hot water
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WAIT....there is Jaguar tread marks around my van!!!!....that is what happened....LOL
Is that from a Silver Jag with Michigan plates ...lol
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