Standard policy
Legal liability
a) Strict liability under published conditions of carriage or trade of which we (the Underwriters) have been advised. The conditions of carriage advised will also be specified in the policy.
Within the haulage industry RHA Conditions of Carriage (1998) is often the most used (Road Haulage Association).
Freight Forwarding activity is often conducted under BIFA (2000) Standard Trading Conditions (British International Freight Association), although there is a 2005 update.
b) Liability under special amendment to the published conditions of carriage or under a special arrangement with a particular customer provided that we are advised and again are specified in the policy.
c) Liability at Common Law if the published conditions or special agreement are held to be inapplicable.
For explanation, this may be because:-
- The conditions of carriage were not properly notified to the customer.
- There is no privity of contract with the owner of the goods,
- Where there is a fundamental breach, and
- The operation of the Unfair Contract Terms Act.
The Common Law cover will often have a separate limit to that of the basic cover offered and one which may normally be higher.
d) The policy may be extended to cover liability under the CMR Convention.
Liability may be insured for:-
- known CMR liability in the united Kingdom only,
- known CMR liability on the continent of Europe,
- CMR liability incurred unwittingly.
The policy will cover liability under the Convention for loss or damage to the goods including contingent liability for the acts of successive carriers.
Liability for delay is covered to the extent that the carrier is liable for consequences of delay under article 23 (5).
It should be remembered that CMR applies to every contract for the carriage of goods by road in vehicles where the place of collection and delivery are situated in two different countries of which at least one is a signatory.
Other Liabilities
Warehousekeepers and/or Coldstore Operators legal liability coverage is also available for loss or damage to goods whilst in their care, custody or control.
The use of Sub Contractors to carry goods is a regular occurrence in the haulage industry and where a carrier uses sub contractors they remain liable as principal under the original contract for loss or damage which may occur whilst in the hands of the sub contractor. The policy may be extended to cover this contingent risk.
See also our pages on elements of cover, goods in transit and own goods in transit.