An Arizona House bill that is expected to draw consideration in committee this week would do away with indemnification clauses in motor carrier transportation contracts. The clauses are set up to protect or hold shippers harmless from anything that happens with a shipment.
Joe Rajkovacz, OOIDA’s director of regulatory affairs, said this kind of legislation is critical for fairness in the trucking industry.
“Indemnification amounts to somebody else using your insurance to cover their negligence,” Rajkovacz said. “Shippers are riding on the back of a trucker’s insurance policy to protect themselves from their own negligence.”
Sponsored by Rep. Jerry Weiers, R-Glendale, the bill is intended to level the playing field for trucking companies and professional drivers. Shippers that improperly load product would be prevented from shifting liability. Contractual language to the contrary would be void.
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Joe Rajkovacz, OOIDA’s director of regulatory affairs, said this kind of legislation is critical for fairness in the trucking industry.
“Indemnification amounts to somebody else using your insurance to cover their negligence,” Rajkovacz said. “Shippers are riding on the back of a trucker’s insurance policy to protect themselves from their own negligence.”
Sponsored by Rep. Jerry Weiers, R-Glendale, the bill is intended to level the playing field for trucking companies and professional drivers. Shippers that improperly load product would be prevented from shifting liability. Contractual language to the contrary would be void.
full story
