The law firm Smith Moore Leatherwood published a thought provoking article shedding some light on a foggy topic … Brokers, Carriers, And Cargo Claims – Who is responsible for determining appropriate cargo limits?
Key takeaways are below:
· Courts have recognized that the parties can control who is responsible for informing the value of the shipment and of any necessary insurance contracts they agree to. Brokers and carriers should both look to include language in their contracts defining who has responsibility to address value and necessary insurance.
· Carriers must take steps to be aware of the value of freight that they are hauling and obtain appropriate insurance.
· Brokers should be aware that in the absence of a contract they would not be generally liable to a carrier or precluded from pursuing a carrier loss where they have not informed the carrier of the value of the freight.