Carrier legal liability insurance is an important tool in the toolbox of a professional goods transporter. It is especially recommended insurance for road transport companies given the condition of Indian roads. Though, conditions are gradually improving the insurance will retain its importance as one of the key business insurance covers for the carriage companies.
Many businesses require the movement of goods and merchandise from one place to another. This creates a risk of goods and merchandise being damaged in transportation. If goods are damaged in transit, the owner of the goods may sue the transporter for the losses. Carrier liability insurance comes to the rescue of the transporter to cover such costs.
What is Covered by The Policy?
Carrier liability insurance covers the financial/legal liabilities and unexpected expenses incurred in the transportation of goods and merchandise. The damage during loading and unloading of goods is also covered under this policy along with the damage occurred at the time of temporary storage.
- Any damage caused to the cargo resulting from the transport vehicle catching fire, exploding or meeting with an accident.
- Damage caused by mishandling of cargo after loading and before unloading
- Damage caused due to floodwater or other cargo in transit
- Any contingent legal liability arising to the transporter due to damaged goods delivery
- Cost of recovering the undamaged cargo
- Cost of transfer from one conveyance to another for shipment (under contingency)
- Any cost incurred for emergency storage of the goods while in transit
- Legal expenses incurred in defense under litigation
- Costs incurred as the professional fee of the ‘Average Adjusters’ (Marine Insurance Claim Experts)
What is Not Covered by the Policy?
Exclusions under these policies are pretty clear. Still, it is better to read the policy document carefully. Some of the standard exclusions within commercial carrier insurance coverage are:
- Any liabilities the transporter has incurred by entering in the contract other than Carriers Act 1865 or Carriage by Road Act 2007
- Any damage to the properties belonging to the carrier or his employees
- Perishable goods, natural wear, and tear, etc.
- Damage due to wars, strikes, riots radiation, etc. is also not covered
- Any goods and stock that are illegal imports, banned or smuggled are not insured
There are some accountabilities of the person who is taking up the insurance as well like:
- All the steps should be taken to make sure that losses are minimized
- It is advisable to hire skilled staff to take proper care of the goods
- A proper record of goods and stock and their condition should be maintained regularly
It takes years to establish a business, and sudden losses can push the business financially backward. Proper care should be taken to ensure the business stays clear of avoidable losses. Carrier legal liability insurance is a tool that helps you reduce the impact of such losses. Additionally, your careful approach to the business will keep the cost of insurance low.
How to Buy?
Like any other expense in business insurance also requires scrutiny. Especially when the business must pay the premium, being the beneficiary of the policy. Meaning, you will need to compare features, prices, facilities, etc. before you can decide on the insurer and the policy.
The world of the Internet contains all the features to help you with your buying decision. SecureNow can provide you with a comparison of various suitable insurance options along with additional benefits. Also, taking up insurance not only saves your time but also gives you an opportunity to compare different options and different quotes. So, do comprehensive research of all the policies available online, compare them and ask for the best quotes and then select the one that suits your requirements.
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