My question in regards to the 3 mil excess policy for the motor carrier. How did the broker even get the freight if that was a requirement by the shipper? I have yet to this day to found a shipper that would allow the broker to beat to a different drum then the carrier.
Great question. I don't believe it's intentional. However, we do see some discrepancies on motor carrier agreements with regards to broker vs. carrier limits. We also recognize there are times shippers will make exceptions for longstanding relationships with both brokers and carriers depending on the situation.. Also, it's good to note for a broker to get a 2 million excess contingent Auto Liability policy it would generally cost around 10k-20k in annual premiums. However, for a motor carrier to get a 2 mil excess policy the price could double or even triple the price.
Truth of the matter is that Trucking companies are the most regulated business in this country. Insurance has become completely one of my biggest Problems.
My question in regards to the 3 mil excess policy for the motor carrier. How did the broker even get the freight if that was a requirement by the shipper? I have yet to this day to found a shipper that would allow the broker to beat to a different drum then the carrier.
Great question. I don't believe it's intentional. However, we do see some discrepancies on motor carrier agreements with regards to broker vs. carrier limits. We also recognize there are times shippers will make exceptions for longstanding relationships with both brokers and carriers depending on the situation.. Also, it's good to note for a broker to get a 2 million excess contingent Auto Liability policy it would generally cost around 10k-20k in annual premiums. However, for a motor carrier to get a 2 mil excess policy the price could double or even triple the price.
Truth of the matter is that Trucking companies are the most regulated business in this country. Insurance has become completely one of my biggest Problems.
It sure does seem that way. Glad you watched this episode.
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Thanks for watching!