Freight claims - deductible

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I have just been presented with the following dilema, any comments or suggestions are appreciated.
We recently had a freight claim with a carrier. After all the proper notifications and paperwork were filed and everything seemed to be progressing smoothly, adjusters were sent out, and a settlement was reached with the customer. The insurance company mailed their cheque to the customer and the carrier was supposed to mail his portion which represented his deductible - $2500.00. I have just heard from our customer, who tells me the carrier has sent only $500.00 along with a letter lamenting the tough economic times and a promise (?) to pay the remaining $2000.00 in installments.
My questions are:
1) Should I wait to see if the carrier will honour his promise to pay the remaining money or demand full payment now?
2) Does the insurance company have any responsibility to make good on the outstanding amount?
I know times are tough, but when you decide to make hauling freight your living, aren't you supposed to accept the liabilities that go along with that decision?
I welcome any responses.
 
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BMC 32 - Try this if it was a US load

BMC 32—The best-kept secret in transportation?
William J. Augello -- Logistics Management, 7/1/2002
It never ceases to amaze this writer how many transportation and logistics professionals know nothing about the BMC 32 Endorsement. That endorsement, which is a provision added to a carrier's insurance contract, was created to protect shippers against unrecoverable transit losses that occur when shipping via motor carriers and freight forwarders (the freight forwarder version is called the "FF 32 Endorsement"). In my opinion, this is one of the most valuable protections that the Congress and the Interstate Commerce Commission (ICC) ever established to safeguard the shipping public.
Beginning in 1935, the ICC's Bureau of Motor Carriers (BMC) required all motor vehicle common carriers to attach to their cargo-insurance filings this special endorsement from their insurer, which made the insurer primarily liable for the first $5,000 per vehicle, or $10,000 per occurrence, in the case of loss or damage. (Prior to 1976, the limits were $2,500 and $5,000, respectively.) The ICC is long gone, but the requirement is still in force, although cargo-insurance filings must now be recorded with the U.S. Department of Transportation's Federal Motor Carrier Safety Administration (FMCSA).
The most important features of the BMC 32 Endorsement are as follows:
1. The cargo insurance coverage pertains to all losses or damage for which the carrier is liable up to those limits, without regard for any deductibles or exclusions that may be in the policy;and
2. The coverage remains in effect until the insurer files a notice of cancellation or modification with the FMCSA. If the insurer fails to file such a notice, it remains liable for the carrier's claims. To illustrate the importance of this provision, when LTL carrier P.I.E.'s cargo policy lapsed, its insurer forgot to notify the ICC that it had canceled P.I.E.'s insurance, so claimants were able to collect from the insurer long after the motor carrier had filed for bankruptcy.
Furthermore, if the carrier files for bankruptcy, or otherwise is unable to or fails to pay lawful claims, the claimant may recover from the insurer up to the endorsement's limits. Be prepared, however, for the insurance company to decline to pay the claim for a variety of improper reasons. These may include "We've never heard of a BMC 32 Endorsement;" "The carrier denied liability for this claim so we have no liability;" and "The policy excludes coverage for this type of damage."
Note that this coverage only applies to "common carriers." But because Congress eliminated the distinction between common and contract carriers when it shut down the ICC, this requirement should rightfully apply to all motor carriers today. Unfortunately, the DOT has refused to change its registration procedures to include all motor carriers under one category until it completes the single-state registration system. Congress gave the DOT two years to complete that project, and the agency is now four years behind schedule. When the agency finally does finish the job, all motor carriers should have to include this endorsement in their cargo insurance filings.
Perhaps by that time, the FMCSA will recognize the inadequacy of the present amounts and heed the Transportation Consumer Protection Council's request to increase the required coverage to $50,000 per vehicle and $100,000 per occurrence.
 
Totally agree with you, Insurance is part of the business. If you can't afford a $2500 deductible then I guess you should ask for that from your insurance broker and then pay higher premiums as a result.

I would not wait. I would contact the insurance company and make it clear to them what has happened.

2. The insurance company may not have any "responsibility" to make good on this, but if you discuss it with them in the right way, they will take care of it. I once had a carrier outright refuse to initiate a claim because they said it was below their deductible, of course they didn't want to pay out of pocket either. I contacted their insurance company and after going through a few levels of their management hierarchy I threatened to sue them if they would not pay for the claim. The insurance company's response was that "although we are not liable, we are not prepared to defend this matter in court". I read that as "we know you have us by the balls, and although we are not going to admit that, we will pay for the claim to get you off our backs"...

Good luck
 
My sincerest thanks to both who responded. Hey Pablo, in spite of some of the caustic comments thrown in your direction by others on this site, I for one, enjoy your participation on Inside Transport and find your insight in transportation matters to be useful and informative. Please continue in your attempts to enlighten us all.
 
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Most Insurance companies will assist claimant in becoming whole. If prompted, they will use threat of policy cancellation to enforce immediate payment of carrier deductible. Contact their insurance provider immediately to assist in this matter.
Furthermore, I would suggest that you review insurance policies and nature of deductible. If HIGH and you are feeling uncomfortable with same secure an umbrella rider to cover you for such an instance or simply do not use carrer.
 
Most insurance companies have a security deposit which is higher than the deductable just for this type of situation. I would be going right after the insurance company to settle this and I think you would be surprised at how fast this would happen.
 
Which Insurance Companies??

From time to time, I hear this about the insurance deductibles, but have never experienced it personally. Which insurance companies pull this trick? I have had a few claims in the last year with Markel and never experienced this deductible deductible ploy.
 
Scam Chaser, my original post referred to a freight claim on a shipment from the US to Canada. The total claim was approx. $20,000.00. Cherokee Insurance, Warren, MI settled for $17,500.00 directly to our customer, the remaining $2500.00 was the deductible portion which the carrier claims he will have difficulty paying. When I contacted Cherokee to advise them of this and to express our displeasure, they said that because the claim was over $10,000.00, the BMC 32 provision is satisfied and that we have to deal with the carrier to recover the $2500.00.We are monitoring this situation and hope (?) that the carrier follows through on his promise to pay the outstanding amount. It would seem in this case, that the insurance provider considers the matter closed if the total claim exceeds $10,000.00 and any deductible amounts left unpaid are up to the claimant to fight for.
 
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