A property broker brokered a load of frozen cauliflowers from Florida to New York. Prior to picking up the load, the trucker submitted an ACORD certificate as proof of insurance as required by the property broker and the seller/shipper.
En route to New York, the refrigeration unit may have malfunctioned and shut off. The trucker did not discover this right away but managed to restart the unit. The buyer/consignee rejected the load as the cauliflowers showed signs of having been defrosted. Moreover, the pulp temperature at delivery exceeded the required temperature. The loss was $20,000.00.
The trucker’s insurer declined coverage as the tractor used to haul the trailer was not scheduled on the policy. The property broker submitted the claim to Avalon under their Contingent Motor Truck Cargo (CMTC) coverage. Avalon investigated and paid the claim subject to the property broker’s deductible.
For additional information on Contingent Motor Truck Cargo coverage, contact your local Avalon representative.
The Quest Newsletter is designed to provide critical information in the transportation industry. Avalon Risk Management is not responsible for the accuracy or reliability of information contained in articles. The reader/user assumes all risk in the use of such information.