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Claims Corner: Dishonest Acts of Third-Parties

January 18, 2024 Avalon

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A Property Broker brokers a load valued at $216,271 to Carrier (A). With approval from the Broker and the proper brokerage authority, Carrier (A) then re-brokers the load to Carrier (B). 

Unbeknownst to Carrier (A), Carrier (B) turned out to be a fraud and stole the load using a fake driver’s license, fake Bill of Lading, and a fake USDOT number. The claim of $216,271 was denied because the Contingent Cargo policy excluded losses due to Dishonest Acts of unauthorized Third Parties. If the Broker had purchased the optional Dishonest Acts of Third Parties coverage on their Contingent Motor Truck Cargo policy, the claim would have been paid.

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