Cargo losses can be more than just a dollar loss. Missed deliveries can trigger lost time for your customers, missed deliveries to downstream clients and significant disruption to production schedules. As the value and criticality of the shipment goes up, your due diligence in selecting the motor carrier should also increase. Here are a few tips to help you qualify a motor carrier.
- Does the motor carrier have motor truck cargo legal liability insurance in force and what limits are carried? Ask for a certificate of insurance and review the policies in force. There should be auto liability and well as cargo liability coverage in force. The value of your shipment should fall within the cargo liability limits shown.
- Review the motor carriers authority, safety record and accident records that are available from the Federal Motor Carrier Safety Administration. You can access a company snapshot that has a concise electronic record of a company’s identification, size, commodity information, and safety record, including the safety rating (if any), a roadside out-of-service inspection summary, and crash information. You can access these records at no cost via the DOT’s Safety and Fitness Electronic Records System (SAFER).
- Will they use their own equipment and staff to make this delivery? It is common for motor carriers to use leased drivers and equipment to make trips or parts of trips. How many different hands will your shipment pass through?
- If the carrier uses leased drivers and equipment, how do they qualify these other carriers? Do they review motor vehicle records for the drivers, verify experience and check references?
- Does the carrier have any form of GPS monitoring of the truck, trailer or cargo?
- Do they have a security program for the cargo and terminals? How will your shipment be secured en route? Will there be any times when the freight is unattended?
- What route will the shipment take? Are there any known theft hot spots along this route? Knowing where the trouble spots are can help you avoid them.
- Your cargo is the key to your profitability and production. Take care when entrusting it to a motor carrier for transportation. Selecting and qualifying the motor carrier should have the same importance as selecting an employee.
This material is provided for informational purposes only and does not provide any coverage or guarantee loss prevention. The examples in this material are provided as hypothetical and for illustration purposes only. The Hanover Insurance Company and its affiliates and subsidiaries (“The Hanover”) specifically disclaim any warranty or representation that acceptance of any recommendations contained herein will make any premises, or operation safe or in compliance with any law or regulation. By providing this information to you. The Hanover does not assume (and specifically disclaims) any duty, undertaking or responsibility to you. The decision to accept or implement any recommendation(s) or advice contained in this material must be made by you.
LC MAR 2019 09-232 H