Contingent Auto Liability Clause Samples
The Contingent Auto Liability clause establishes that a party, typically a business, assumes liability for automobile-related incidents only in specific situations where the primary insurance coverage does not apply or is insufficient. This clause generally applies when employees or contractors use their own vehicles for company business, and the company's insurance steps in only if the driver's personal auto insurance fails to cover a claim. Its core function is to provide a safety net for the company, ensuring that there is backup liability protection in place, thereby mitigating the risk of uncovered losses from auto accidents related to business activities.
Contingent Auto Liability. If utilizing Interstate Carriers Do you reject carriers with 2 or more SMS BASIC alerts? ☐ Yes ☐ No Do you reject carriers with auto liability limits less than $1,000,000? ☐ Yes ☐ No Do you reject carriers with an insurer rated below an A- per A.M. Best? ☐ Yes ☐ No If utilizing Intrastate Carriers Do you require carriers name you as an Add’l Insured and request a COI? ☐ Yes ☐ No Do you verify claims information, documented by hard copy loss runs? ☐ Yes ☐ No Do you reject drivers who have had liability claims? ☐ Yes ☐ No Do you require drivers to be at least 23 years of age with 2 or more years of experience? ☐ Yes ☐ No If brokering HazMat loads Do you verify the financial responsibility limits as mandated by the FMCSA? ☐ Yes ☐ No Does your agreement require the carrier to have ▇▇▇▇▇▇ & Accidental Pollution Coverage? ☐ Yes ☐ No Do you verify adequate limits for HazMat Goods and CA9948 by reviewing the COI? ☐ Yes ☐ No What hazardous commodities are being hauled? If brokering oversize/weight What percentage of total loads are in this category? How do you verify experience handling this freight? Do you utilize risk management software like SAFERWATCH or a third party service that monitors your carriers? ☐ Yes ☐ No If “Yes,” what is the name of this service/party? Do you require a rate sheet that mandates that you, as a broker, do not sanction any FMCSA violations in the acceptance of a load? ☐ Yes ☐ No If your current broker carrier agreement does not have language mandated by the insurance company, would you be willing to amend your language for all future agreements? ☐ Yes ☐ No Do you arrange shipments for any of the following commodities? ☐ Yes ☐ No Acetylene, Acids, Alcoholic Beverages, Ammunition, Boats, Clothing , Copper, Cotton, Electronics, Explosives, Fresh Seafood, Furs, Household Goods, Ivory, Jade, Jewelry, Liquid Petroleum, Live Poultry, Livestock, Machinery, Mobile Homes, Motor Vehicles, Narcotics, Oriental Rugs, Pharmaceuticals, Portable Buildings, Precious Metals, Swinging Beef, Tires, Tobacco, Tobacco Products, Watches If “Yes,” please state the commodity, anticipated number of total loads and anticipated percentage of total revenue: What is the minimum cargo limit required under your broker carrier agreement? Does your broker carrier agreement require a locked or unattended vehicle warranty? ☐ Yes ☐ No Does your broker carrier agreement require all cargo coverage to be written on a broad form? ☐ Yes ☐ No If brokering refrigerated commodities ...