Why Risk Management?

Corporate Governance. Corporate Citizenship. Shareholder Confidence
Risk Management is not just for insurance specialists and lawyers anymore.

Reducing incidents of freight damage, cargo theft, highway accidents, hazmat releases, and certainly injuries to third parties, is good business and good corporate citizenship. It's the right thing to do. Industry leaders and high performing companies also recognize that minimizing these risks is a critical component of sound corporate governance, controlling costs, and maximizing shareholder confidence.

As but one example, more than ever, shippers today are exposed to legal liability arising from the conduct of their carriers. When product is lost and harm results, when a highway accident involves a motor carrier, shippers are being called to account and held liable. The plaintiffs' bar is becoming ever more aggressive pursuing claims against shippers, and courts are becoming ever more hospitable to these claims. Even more alarming, the legal trend is a clear and steady erosion of traditional protections against this type of exposure.

In today's legal climate, traditional protections like hiring independent contractors and insisting on rigorous indemnity provisions in shipper-carrier contracts will NOT protect shippers from liability.