Shippers Have More Protection With Freight Brokers & 3PL Providers
OMAHA, Neb.– July 2, 2011 – Shippers should be aware of the Anti-Indemnity Laws that may have already been passed in their own state.
Shippers require their transportation providers to hold them harmless from any and all losses regardless of who’s at fault. The passing of the Anti-indemnity Law means indemnity agreements in motor carrier contracts are against state public policy and, therefore, void. That puts the balance of liability back to shippers doing business with motor carriers directly.
However, the Anti-Indemnity Law does not pertain to shippers contracting with 3pls/freight brokers. This could mean more business for 3pls/freight brokers, but at how much risk to themselves?