51
RISKMANAGEMENT
OCTOBER 2014
ACT
Route survey indemnity
Additionally, if the escort desires
toprovide route survey services, the escort
should indemnify the carrier for any loss
or claims arisingout of the route survey,
and subsequent route chosen.
Insurance
Inconjunctionwithanenforceable
indemnityprovision, thecontract should
containan insuranceprovision that
requires theescort toname thecarrier
as anadditional insured.Thisworks as
extraprotection inconjunctionwith the
indemnity requirement.Our agreement
requires acommercial autopolicy, and
alsoaprofession liability insurance (errors
andomissions)policy. Sometimes a
commercial autopolicywill not respond
toaclaim, and thecarrier is leftwithout
much recourseagainst anegligent escort.
Havingaprofessional liabilitypolicy in
place increases the likelihoodof theescort’s
insuranceprovider covering theclaim
fordamage toyour loadwhereyouwere
following theescort’s instructions.Getting
namedas anadditional insuredonall
policiesof insuranceprovidedby theescort
is theultimategoal of thecarrier.
Compliancewith all
applicable laws
By law, certain requirementshave tobe
met of escort drivers. Those requirements
shouldbe clearlyoutlined in the contract.
Specific regulations regarding flags,
markingson the escort car, stoppaddles,
safetyvests,CB radios, height poles,GPS,
flashing lights, andmore, shouldbe clearly
outlined in the contract. Then, if the
escort doesnot complywithoneof these
requirements, not onlyare theynegligent,
but theyhave alsobreached the contract.
These requirements shouldbeoutlined so
the carrier can transfer risk to the escort if
there’s a loss and the escort isnegligent.
These are someof thekeyprovisionswe
suggest inourpilot car/escort agreement.
However, there aremanyother areas
our contract covers inorder toprotect
carriersof oversize/overweight loads.
Contractmanagement and review is a
serviceprovided toNBISpolicyholders
inorder toprovide theutmost in risk
transfer. If youwould likehelpwithyour
transportation contracts, please contact
Nelson
) orRobert
Moore (
).
n
Independent contractor
relationship
It shouldbe clear that the relationship
between the escort and the carrier is
that of an independent contractor, and
not of an employer/employee. This
helps to shield the carrier from any
negligence on thepart of the escort. If
the escort is an independent contractor
and is negligent, the escort cannot shift
liability to the carrier under a theory
of respondent superior and say that the
negligence occurredwithin the scope of
its employment.
Indemnity and hold
harmless
The contract should clearly state that
the escort shall indemnify the carrier for
all claims, losses, expenses, etc. caused
inwhole or inpart by thenegligence
of the escort in theperformance of the
workunder the agreement. In the above
example, the escortwas negligent in
not having theproper height pole, and
misguiding the carrier under thewires.
However, because therewas no contract
inplace, the escort hadnoobligation to
indemnify the carrier.
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