TRBL/CTAU
What is preferred, having truck broker liability or contingent auto?
Daily Double: Why
Truck Broker Liability
It reacts primary
What is contingent cargo?
It is a cargo policy for the brokerage that reacts secondary to the motor carriers cargo policy.
Name 3 markets/MGA's
GTU, LogistiQ/SPG, EPIC, IRP
Are policies auditable?
Daily double, are all 3 options you can see?
Yes, most are.
Auditable excess projected revenue, margin clause/free growth, non auditable
When it comes to limits, what do you need to be cautious of when reviewing quotes?
Is it aggregated.
The CTAU coverage typically is but historically TRBL hasn't been but are starting to see it.
Brokering refrigerated freight and GTU is my carrier, what do I need to ask for?
Refrigeration breakdown endorsement.
What does GTU exclude that LogistiQ can carve back their exclusion to cover? Think Asset side.
Coverage for loads to affiliated carriers.
A brokerage and a motor carrier should have seperate what?
Legal entities
What is the most common loss reported?
Negligent hire
Name 2 typically excluded commodities
Money/Securities including gold/silver/bullion, live animals, intermodal containers/trailers/other carrying conveyances (Travelers will if on BOL), accounts/bills/blueprints/deeds/...etc for valuable papers or records.
If someone asks for a BCA when they do not have one, what can you do?
GTU has a templated one on their website that clients can use.
Give an example of an E&O claim
Broker told motor carrier to set the wrong temperature on a load. Told them to go to the wrong city, etc.
If affiliated owned equipment is involved in the accident, what is my concern?
Daily Double: What coverage solution do I need?
Most policies exclude for example if a trailer owned by the brokerage or another entity the own is being pulled by the carrier causing the accident.
Trailer liability policy.
Why do we prefer a carrier like Travelers to write the CTCG vs what you would see on a standard AAIS form?
Travelers can react primary.
Why is it hard to get monoline WC coverage on a brokerage only?
Carriers see them brokering freight to independent contractors who have the potential to come back and file a claim on their policy. A policy typically with little premium because they rate on all clerical.
What do you need to be carful of when it comes to GL on brokerages?
Most are site only coverage.
What was the law in place that was protecting brokerages that has been now ruled by SCOTUS as not a protection to brokerages for negligence?
FAAA
What is the additional endorsement that Travelers can offer on brokerages?
Brokerage Ops endorsement
Broadens coverage outside their typical legal liability wording. They call it the relationship saver.
Which can you do, re broker or double broker?
Re-brokering can be legal when authorized, but double brokering is illegal fraud where a load is secretly passed to another carrier without permission.
What is the main difference between a broker and a freight forwarder?
Freight forwarder will have the cargo in possession at some point.