Direct Drive Logistics Covers Errors and Omissions
'Errors and omissions' is a policy to cover the liability that may occur from the selection of a motor carrier for the transport of your product. This insurance coverage is typically activated when there is a serious accident and the plaintiff attorney is looking for anyone and everyone to contribute to the settlement process.
These claims will be made against a logistics company as to their selection of a motor carrier that the Plaintiff attorney will attempt to portray as unsafe—and the logistics company as negligent in contracting the motor carrier for the transport of your shipment.
The Difference between Contingent and Primary Insurance Policies
Contingent policy forms have appreciably different coverage definitions. Generally, contingent cargo policies follow the form (policy conditions) of the primary motor carrier and do not provide any additional coverage to the shipper/customer.
For example, if a motor carrier has policy exclusion for theft and dishonesty and the tractor-trailer is stolen along with the cargo; there is no coverage for the cargo loss.
Contingent Cargo Follows Form of Primary Policy
The contingent Policy carried by the Logistics Company (under the following form) will not provide cargo coverage to the shipper/customer, because this policy follows the form of the underlying coverage (The motor carrier’s policy with the exclusion for theft and dishonesty). These exclusions are not listed on a certificate of insurance.
Contingent cargo coverage will not cover what the primary coverage cannot—it follows the form of the primary policy.
Primary policies address the cargo claim directly with the shipper/customer and subrogate any damages to the motor carrier contracted by the logistics company. This gives the shipper/customer one point of contact for all cargo claims. When you need to make a cargo claim, rest assured you will speak directly with a Direct Drive Logistics representative, ready to address any of your questions or concerns about your shipment.
