Hanover Contingent Cargo Best Practices for Broker Carrier Agreements

Hanover has the best coverage in the marketplace- but like so many insurers they want their insureds to exhibit best practices so that losses can be averted and so they can keep their premiums low.  Part of those best practices is having the truck broker require better cargo coverage from their carriers.

That is done 2 ways:

• by having a more explicit broker carrier contract
• by requiring that insurance certificates spell out the terms of that contract.

We saw a great insurance provision in a broker carrier contract:

" Carrier shall procure and maintain at its sole cost or expense the following insurance coverages:

All Risk Broad Form Motor Truck Cargo Legal Liability Coverage in an amount not less that $100,000 per occurrence. The coverage provided under the policy shall have no exclusions or restrictions of any type that would forseeably preclude coverage relating to cargo claims including, but not limited to, exclusions for unattended or unattached trailers, theft, commodities transported under this Agreement, refrigeration breakdown or lack of refrigerator fuel."

This is about as good as you can do as a truck broker and you should require a certificate spelling out same.