TEANA, The Expediting Association of North America, is issuing a “Best Practices Verification of Insurance” recommendation for Motor Carriers.
The action is designed to counter the growing number of Motor Carriers allowing their “Leased On” Owner Operators to maintain incorrect insurance for Expediting.
When an Owner Operator promises to provide their own insurance and that policy turns out to be wrong when a claim occurs, the Motor Carrier is still responsible to pay for the loss for both Liability and Cargo. The entire Expediting Circle of Shared Freight is then jeopardized as legal battles ensue.
Look for updated Motor Carrier/Owner Operator contracts with tighter language, due diligence requisites and firmer monitoring of insurance coverage.
These proposals should help to limit the Exposure to Risk for Owner Operators as well.