Brokers know that as long as carriers do not stick together, brokers can force some seriously negligible terms into their contracts and onto the carrier.
Most of these are terms that brokers and shippers have no legal right to. This is another waived right. I will attach actual statements that come from actual rate confirmations. Accepting these will pierce your corporate protection and could make you personally liable for hundreds of thousands of dollars, or more.
One example could be that the broker asks you to haul a robosaw worth $900,000.
Their Carrier Agreement requires that you maintain $100,000 in cargo coverage.
The broker gives you the load and while you are driving doen the road, a passing truck drifts into your lane, hits your truck causing you to overturn destroying the freight. If you signed an agreement with any statement similar to these, you could be on the hook for the full $900,000 and the broker will want no part of that payment. The broker will leave you hanging when they caused the liability by failing to disclose a value. They will say "We were only the broker". Read this!
EXAMPLE 1 : Carrier shall look only to Broker, and not to the involved Shipper, Consignee, or customer of Broker, for payment of Carrier's freight charges. Broker shall be entitled to deduct any damages or claims against all of Carrier's outstanding receivables from Broker and shall not be limited to deducting the damage charges solely from the load resulting in the damage and/or claim. No Cargo liability limitations shall apply with respect to this shipment, and Carrier shall be responsible for the full actual cost of any damage or loss to the cargo being transported regardless of the amount of cargo insurance required.
EXAMPLE 2: 8.INDEMNIFICATION. Without regard to the insurance limits in Section 8 of carrier agreement, CARRIER shall defend, indemnify and hold BROKER harmless against any claims, actions or damages, including, but not limited to, cargo loss, damage, or delay, and payment of rates and/or accessorial charges to Carriers, arising out of CARRIER’s performance under this Agreement, including but not limited to the actions of any driver, employee, contractor, sub-carrier, owner/operator, or other agent of CARRIER or party performing any of CARRIER’s obligations under this Agreement. CARRIER shall be liable to BROKER for any claims, actions or damages due to the negligence of BROKER. The obligation to defend shall include all costs of defense as they accrue, including reasonable attorney’s fees.
Example 3: 13. INSURANCE: Carrier certifies that its cargo insurance policy does not contain any exclusions relative to the commodity(ies) being transported
pursuant to this Agreement or any other exclusion. The load value listed herein is an estimate and is not intended to in any way limit the Carrier’s or Carrier’s insurer’s liability in the event of cargo loss or damage.