Professionals in the transportation industry are vulnerable to financial exposures and professional liabilities that result from mistakes or failures in the performance of their services – just like professionals in any other industry. Transportation professionals in any facet, including but not limited to customs brokers, property brokers, freight forwarders and drivers, are at risk of making a costly professional error in their day-to-day operations. Without the necessary protection, even a minuscule oversight or error can have a devastating effect on their business.
When it comes to general liability versus professional liability, some transportation professionals may believe their general liability offers enough coverage for their needs. However, while general liability will provide coverage for common third-party damage or injury claims, it typically does not include coverage for employee errors or negligence. Due to the nature of the transportation industry and its ever-changing laws and regulations, it’s all too easy to make an error that turns into a professional liability claim.
Whether errors are made by the trucker, an administrative personnel or the business owner themselves, they can all result in a lawsuit against the company. Some of the most common professional liability claims in the transportation industry include:
- Shipping delays caused by the employee negligence
- Inaccurate quotes for services
- Errors in shipping documents
- Failure to collect documents
- Improper or unauthorized release of goods
- Incorrect classification of goods
- Improperly labeled or packaged goods
- Misdirected freight
- Failure to properly insure cargo
- Negligent trucker hiring practices
- Non-receipt of payment
Essentially, any error or negligence involved in any level of professional transportation services can result in the company being sued by their client. Professional liability, or errors & omissions (E&O) insurance for transportation professionals can provide coverage for the legal defense fees and settlement costs associated with a professional liability claim, up to the policy limits. And while transportation profit margins have been on the rise in the last year or so, most small to medium size trucking companies can’t afford the financial burden that an uninsured errors & omissions claim would put on them.
Even when an E&O lawsuit is groundless, the business can, and does, lose money due to the legal costs involved in defending against the claims. Professional liability insurance is crucial for any transportation professional to mitigate the unique risks that impact them. A comprehensive program, backed by transportation insurance specialists, can provide the support and resources needed to help reduce exposures both in everyday operations and unexpected circumstances.
About American Team Managers Insurance Services
Founded in 1998 by Chris C. Michaels, American Team Managers Insurance Services (ATM) has provided wholesale and MGA services to more than 5,000 independent insurance agents throughout the United States. Our goal is to establish close, long-term relationships with our agency partners and insurance carriers and provide competitive products for the Exclusive and Non-Exclusive markets that we serve. For more information on our products and services, give us a call at (714) 414-1200 to speak to a representative.