INSURANCE CLAIM

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Gogo5050

New Member
Oct 19, 2024
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Ontario
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Hello everyone,

I need some help here.
I’m seeking clarification on whether the insurance liability falls directly on carrier if the carrier claim is denied, or if the broker’s insurance may cover some or all of the cargo loss.
What is the benefit of contingent insurance or the broker's insurance?
Is it fair _ when my insurance is denied - all the liability comes on us rather than the freight broker if they have a valid insurance?
 
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Gogo5050 said:
Hello everyone, I need some help here. My Cargo claim was denied on the basis of criteria. My freight broker deducted 40k USD against the 50k USD claim. I still owe 10k USD. I’m seeking clarification on whether the liability falls directly on us if the carrier claim is denied, or if the broker’s insurance may cover some or all of the cargo loss. What is the benefit of contingent insurance or the broker's insurance? Is it fair _ when my insurance is denied - all the liability comes on us rather than the freight broker if they have a valid insurance?
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Gogo5050 said:
Hello everyone,

I need some help here.
My Cargo claim was denied on the basis of criteria.
My freight broker deducted 40k USD against the 50k USD claim. I still owe 10k USD.

I’m seeking clarification on whether the liability falls directly on us if the carrier claim is denied, or if the broker’s insurance may cover some or all of the cargo loss.
What is the benefit of contingent insurance or the broker's insurance?
Is it fair _ when my insurance is denied - all the liability comes on us rather than the freight broker if they have a valid insurance?
Click to expand...
When you pickup the load and sign the BOL , you are assuming responsibility for the load. Coverage and Liability are two different things...you are 100 percent responsible for the claim regardless of insurances response to your policy. Your policy is there to protect you, if it doesn't protect you that does not mean you are off the hook. That just means you don't have protection from the liability, which you assumed responsibility for when you picked up the load. With respect to the brokers contingent cargo, the broker is entitled to make a claim on their own policy if they want to make their customer whole. But again, the claim occurred while the load was in your possession so you are liable for the full amount . And to prove the extent of your responsibility .........In the event that the broker does make a claim on their contingent and the claim gets paid. ...The brokers insurance will come after you to subrogate that claim - because you are the liable party. I see this everyday , Carriers do not understand the difference between insurance coverage and liability.
 
SCAM CHASER said:
Is the Load Broker in the US or Canada?
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It doesn't matter, the brokers never signs for the load or assumes responsibility for the cargo at any point during transit . Unless they have a contract with the shipper or customer which stipulates that they are assuming responsibility, otherwise they are never going to be legally liable.
 
freightmas said:
It doesn't matter, the brokers never signs for the load or assumes responsibility for the cargo at any point during transit . Unless they have a contract with the shipper or customer which stipulates that they are assuming responsibility, otherwise they are never going to be legally liable.
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Sorry - I am looking for a response from the thread originator
 
freightmas said:
When you pickup the load and sign the BOL , you are assuming responsibility for the load. Coverage and Liability are two different things...you are 100 percent responsible for the claim regardless of insurances response to your policy. Your policy is there to protect you, if it doesn't protect you that does not mean you are off the hook. That just means you don't have protection from the liability, which you assumed responsibility for when you picked up the load. With respect to the brokers contingent cargo, the broker is entitled to make a claim on their own policy if they want to make their customer whole. But again, the claim occurred while the load was in your possession so you are liable for the full amount . And to prove the extent of your responsibility .........In the event that the broker does make a claim on their contingent and the claim gets paid. ...The brokers insurance will come after you to subrogate that claim - because you are the liable party. I see this everyday , Carriers do not understand the difference between insurance coverage and liability.
Click to expand...
so what is the benefit or even the need for freight broker's insurance if they have no liability?
Isn't it there for the losses to be covered in case carrier's insurance claim is denied?


In case of denied insurance the liability falls on the corporation? What if corporation cannot repay the claim? Is it fair that the broker kept 40k USD from the other order we completed without any issues? That deduction is causing me trouble in Cash flow.

Also what if the freight broker utilizes the contingent insurance.

i understand my responsibility, but i am just trying to gain more knowledge.
This is my 2nd claim in 8 years of business.
 
Was the broker somehow at fault that your insurance declined the claim? By using his contingent cargo, the broker would be facing a sharp increase in premiums and, in this market, possible outright cancellation of his policy. He did right by deducting the amount from what is owing to you, and lucky for him that the balance owing was sufficient to cover the loss.

You might appeal your insurer’s decision..that’s an option. It was YOUR insurance that declined the claim after all. But unless the broker is somehow responsible for causing the claim, I would leave him out of it.

I had a load stolen five years ago..$34K..carrier insurance declined and receiver came after my contingent cargo for the loss. I had no option to deduct from carrier as there was nothing owing to deduct from, so I got the receiver off my back by writing them a check for the loss, and I hired a lawyer and sued the carrier. Took a couple of years but got fully compensated and then some. Never touched my contingent cargo..never even notified my insurance of the problem.

Why should I risk having my premiums go up forever or having my policy cancelled because the carrier's insurance declined the claim? Fight your insurer and/or get better coverage…don’t try to hang this on your customer broker.
 
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Freight Broker said:
Was the broker somehow at fault that your insurance declined the claim? By using their contingent cargo, the broker would be facing a sharp increase in premiums and, in this market, possible outright cancellation of their policy. He did right by deducting the amount from what is owing to you, and lucky for him that the balance owing was sufficient to cover the loss.

You might appeal your insurer’s decision..that’s an option. It was YOUR insurance that declined the claim after all. But unless the broker is somehow responsible for causing the claim, I would leave him out of it.

I had a load stolen five years ago..$34K..carrier insurance declined and receiver came after my contingent cargo for the loss. I had no option to deduct from carrier as there was nothing owing to deduct from, so I got the receiver off my back by writing them a check for the loss, and I hired a lawyer and sued the carrier. Took a couple of years but got fully compensated and then some. Never touched my contingent cargo..never even notified my insurance of the problem.

Why should I risk having my premiums go up or having my policy cancelled because the carrier's insurance declined the claim? Fight your insurer and/or get better coverage…don’t try to hang this on your customer br
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what is the point of freight brokers insurance?

Its the freight broker who book a carrier - they get equally involved when booking a load.
They are choosing the carrier for the load.
They are the primary contact for the shipper/receiver !
There is some liability that comes when they book everything on behalf of the shipper/receiver.
 
A freight brokers contingency cargo policy, is used primarily when a carrier fails to maintain his own insurance and a claim arises. A freight broker never takes possession of a shipment, but a carrier certainly does. If your insurer is denying the claim, find out why and as others have suggested, appeal the decision if you feel it is unjustified.
 
I could ask you the same thing..what is the point of carrier insurance when it doesn’t cover the loss? You didn’t say why your insurance declined the loss…Like I said, if the broker was at fault for the loss then he/his insurance should come into play. He’s not at fault simply because he was involved in lining up the load for you.
 
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Commenting to follow the thread. We had similar discussion last week on what is covered under contingent cargo if the carriers' claim is denied.
 
Gogo5050 said:
so what is the benefit or even the need for freight broker's insurance if they have no liability?
Isn't it there for the losses to be covered in case carrier's insurance claim is denied?


In case of denied insurance the liability falls on the corporation? What if corporation cannot repay the claim? Is it fair that the broker kept 40k USD from the other order we completed without any issues? That deduction is causing me trouble in Cash flow.

Also what if the freight broker utilizes the contingent insurance.

i understand my responsibility, but i am just trying to gain more knowledge.
This is my 2nd claim in 8 years of business.
Click to expand...

Their insurance is to protect them not you.... the broker can initiate a legal lawsuit to recoup the money from you . Yes they can deduct via the law of off-set , you owe them /the customer 50k . Like I said if they use their insurance to cover , their insurance will them come to you for reimbursement., either way you are going to to have t pay the entire claim or potential be taken to court ... if you PM me I would be happy to discuss this over the phone.
 
Something is amiss my friends. We are not being told the whole story here.
Gogo5050 said:
My Cargo claim was denied on the basis of criteria.
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Define "criteria".
Gogo5050 said:
My freight broker deducted 40k USD against the 50k USD claim.
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Is there actually an off-set clause in your contract with the load broker? And, if there is, did you actually sign it?
Why USD? Was this a load involving a US origin or destination?

Are you aware there is a prescribed claims process to follow?
What claim process was followed by you, the load broker, and the claimant with respect to the cargo claim?
 
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