Clients hiring commercial transportation companies or motor carriers often have relatively high expectations. They expect deliveries to arrive on time and without any damage to the cargo.
They can sometimes make unreasonable claims against transportation companies because of moderate delays or unpredictable damage to the contents of a trailer. Transportation companies sometimes find themselves facing demands or even lawsuits from clients.
The three strategies below are all important for reducing the frequency of such claims and the likelihood of them succeeding.
1. Include appropriate contract terms
A transportation contract can include numerous clauses that help limit company liability. From clauses limiting responsibility for property damage to rules requiring a degree of flexibility regarding delivery times, many contractual inclusions can help limit a motor carrier’s liability in the event of delays or property damage.
2. Carry adequate insurance
There are many types of insurance available to motor carriers including mandatory liability coverage and a variety of specialized policies. Investing in supplemental coverage to protect against damaged goods can help absorb costs in scenarios where weather, unexpected traffic complications or temperature control failures result in losses.
3. Communicate proactively
Clients can experience setbacks and delays when shipments don’t arrive on time or have damaged contents. Transportation companies typically provide drivers with dispatch devices.
They can train workers to provide employees in the office with information about potential delays or to advise them when there have been issues that may have damaged the cargo. Communicating as soon as possible with clients about issues with their deliveries can reduce disruptions to business operations and other sources of frustration that might lead to litigation.
Having support should a dispute with a client lead to litigation can also be beneficial. Transportation companies generally need help drafting contracts, limiting liability and addressing disputes with clients to protect their reputations and revenue.