If you just rush through and sign agreements without negotiations, then you are the problem in this issue. Brokers want to be in the middle of this but they want zero accountability. They want everything hung in the head of the carriers. INCLUDING THEIR ATTORNEY FEES. People if you do not cover yourself before you haul the load, you will not be covered in the event of an issue.
For everyone good, read what you are signing and understand what it means.
I just got accused, by a broker, of trying to avoid our responsibilities as a carrier because I crossed out the following on their contract:
1.3 Waiver of Rights. Carrier shall, notwithstanding any other terms of this agreement, expressly waive all rights and remedies under Title 49 U.S.C., Subtitle IV, Part B to the extent they conflict with this Agreement.
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7. INDEMNIFICATION. CARRIER WILL INDEMNIFY, DEFEND AND HOLD HARMLESS BROKER, ITS AFFILIATES AND ITS CUSTOMERS (AS INTENDED THIRD PARTY BENEFICIARIES) FROM ANY AND AGAINST ALL LOSSES (as defined below) ARISING OUT OF OR IN CONNECTION WITH THE TRANSPORTATION SERVICES PROVIDED UNDER THIS CONTRACT, INCLUDING THE LOADING,UNLOADING, HANDLING, TRANSPORTATION, POSSESSION, CUSTODY, USE OR MAINTENANCE OF CARGO OR EQUIPMENT OR PERFORMANCE OF THIS CONTRACT (INCLUDING BREACH HEREOF) BY CARRIER OR ANY CARRIER REPRESENTATIVE. CARRIER’S OBLIGATION TO INDEMNIFY AND DEFEND SHALL NOT BE AFFECTED BY ALLEGED NEGLIGENCE OR WILLFUL MISCONDUCT OF BROKER, ITS AFFILIATES OR CUSTOMERS. IT IS THE INTENT OF THE PARTIES THAT THIS PROVISION BE CONSTRUED TO PROVIDE INDEMNIFICATION TO BROKER, ITS AFFILIATES AND CUSTOMERS TO THE MAXIMUM EXTENT PERMITTED BY LAW. IF THIS PROVISION IS FOUND IN ANY WAY TO BE OVERBROAD, IT IS THE PARTIES INTENT THAT THIS PROVISION BE ENFORCED TO ALLOW INDEMNIFICATION TO THE MAXIMUM EXTENT PERMISSIBLE. “Losses” mean any and all losses, liabilities, obligations, personal injury, bodily injury, property damage, loss or theft of property, damages, penalties, actions, causes of action, claims, suits, demands, costs and expenses of any nature whatsoever, including reasonable attorneys’ and paralegals’ fees and other costs of defense, investigation and settlement, costs of containment, cleanup and remediation of spills, releases or other environmental contamination and costs of enforcement of indemnity obligations.
What if their hilo driver runs over my driver, or smashes into the cab of my truck(This has happened).
If you are not careful, this one below can exceed the limits of your insurance and make you or your company personally liable: First you waive your carmack amendment rights then you agree to this and BOOM, you’re out of business when there is an issue. Carmack covers the product as an investment and that amount only. Don’t agree to anything more. It’s not their freight anyway. It is the freight of the customer. Also, IF they had trucks, THEY wouldn’t agree to these terms.
8.Carrier’s Cargo Liability. Carrier assumes full liability for the greater of replacement cost, Shipper’s/ Consignor’s commercial invoice or market value for loss, damage or destruction of any and all goods or property tendered to Carrier by Broker, and for the full course of carriage. Carrier shall inspect each load at the time it is tendered to Carrier to assure its condition. If Carrier is tendered a load which is not in suitable condition, it shall notify Broker, immediately. Cargo which has been tendered to Carrier intact and released by Carrier in a damaged condition, or lost or destroyed subsequent to such tender to Carrier, shall be conclusively presumed to have been lost, damaged or destroyed by Carrier unless Carrier can establish otherwise by clear and convincing evidence. Deliveries with broker seals shall be rejected and declared a total loss for which the Carrier is held responsible.
Carrier shall either pay Broker directly or allow Broker to deduct from the amount Broker owes Carrier, the amount of Customer’s full actual loss. Carrier agrees that it will assert no lien against cargo
Be careful of “Full Actual Loss”. This too can exceed your insurance limits.