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Load of produce not covered due to "delay".

January 8, 2013

 

You have "reefer breakdown coverage" right? if your tractor has engine problems and your load of tomato's gets to the shipper 2 days late and are over ripe, they are covered right?

 

PROBABLY NOT!

 

In most cargo policies sold today there is an exclusion of coverage that carriers often miss, the wording will be along the lines of:

 

This Policy does not apply to any liability resulting from:

 - Delay, loss of use, loss of market.

 

 

 

The word to focus on is DELAY. Carriers must realize that if a perishable load is not accepted by a shipper because it is over ripe due to the truck being late, the insurer will most likely deny the claim leaving the trucking company on the hook for the total loss.

 

What's the solution? If your truck breaks down with any commodity that MUST arrive on time or will be refused, do what ever is necessary to get it there on time.

 

 

 

 

 

 

This blog post is a matter of opinion only, you should consult a certified safety consultant to construct your / your companies safety procedures.

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