Archive | Typical Insurance Carried
If you use VHI as a provider, not only do you get our best effort at qualifying the shipper or carrier, you might also get a layer of protection through certain policies we have in place. For example, VHI normally carriers the following:
TYPES OF INSURANCE TYPCIALLY CARRIED AT VHI TRANSPORT
Commercial General Liability:
VHI carries $1,000,000 for each occurrence and $2,000,000 policy aggregate.
Errors and Omissions:
VHI purchases E&O insurance for our protection in the event VHI should commit an error that leads to a financial loss while acting as a Property Broker.
Excess Umbrella Policy:
VHI carries a $1,000,000 limit over and above our General Liability and Employer’s Liability limits.
Workers Compensation and Employers Liability:
This insurance is for the benefit of the employees of VHI. It does not extend to motor carrier drivers that are arranged for by the company. Workers Compensation laws do not make it reasonable that VHI could pay for the drivers, from nearly all 48 states, keep track of earnings as a basis for premium, then offset against the rightful payer of premiums.
Contingent Cargo, NON FORM FOLLOWING:
VHI is one of but a few Third Parties that provide this insurance along with its E&O policy. Contingent Cargo Insurance triggers, if, and when the motor carrier’s insurance refuses an actual claim. Many Contingent Cargo policies “follow form” and mirror only the coverage of the motor carrier. VHI has $100,000 in Contingent Cargo coverage with a sublimit of $50,000 for Dishonest Acts of Carrier. The Contingent Cargo is subject to a $5,000 deductible ($10,000 for Reefer Breakdown).
Errors and Omissions: VHI has $100,000 in E&O coverage with a $5,000 deductible.
Surety Bond: VHI was the first Broker in the U.S. to voluntarily sign up for the TIA’s certified performance bond at $100,000. Fewer than 35 Brokers have this insurance as of 4-1-09.
Disclaimers: The above illustration is offered as an example of what VHI typically could have in place at any one time. Many of the types of coverage could be limited, could have exclusions, could be specific for occurrence or user. There is no assurance whatsoever that any insurance or warrant made through this or any other venue is absolute or a guaranty. It is meant to show an agent, a motor carrier or a shipper what coverage we typically have in place when they are considering our services. Specific coverage for specific needs can be discussed and often involve our underwriter for definitive coverage. However for current information please refer to the Shipper or Carrier Packet sections on this web site, under Shipper or Carrier.
VHI, is a Licensed Property Broker, in business since 1977. VHI has served the Third Party Industry in various capacities, including involvement in the “Model Contract” between Shippers (NITL) and Brokers (TIA). This contract involved several years of meetings between various leaders of the TIA, (Third Parties) and NITL, (Shippers), and their various legal representatives. Then the development of a “Model Contract between Brokers TIA and the motor carrier industry, that was developed in 2006. David Gee, CEO of VHI, was Board Chair of TIA in 2003and 2004, or during the time the model contracts were developed. The underlying message in all of the contracts are that brokers are distinct from motor carriers and do not have the ability to carry the risks of a motor carrier.