Risky Business

Why VOI? Did You Know #6

Motor Carriers who do not fully disclose to the Insurance Company their complete scope of operations regarding all units hauling on their behalf under their MC authority are committing insurance fraud, which is a crime and subject to criminal and civil penalties. This applies to any Officer of the Motor Carrier entity, similar to Map-21 requirements.

This lack of disclosure, in turn, exposes the Shipper, 3PL or Broker on the freight to unpaid claims, vicarious liability and negligent entrustment lawsuits.