Question

Identify four reasons why an owner of goods should not depend upon a carrier's insurance:

a) Limited Coverage, High Premiums, Delayed Claims, and Subrogation
b) Unpredictable Rates, Lack of Transparency, Complexity, and Deductibles
c) Carrier Insolvency, Policy Exclusions, Conflicts of Interest, and Inadequate Appraisal
d) Regulatory Compliance, Inefficient Claims Processing, Poor Customer Service, and Policy Cancellations

Answer 1

There are several reasons why an owner of goods should not depend upon a carrier's insurance, including a) limited coverage, high premiums, delayed claims, and subrogation.

Step-by-step explanation:

An owner of goods should not depend upon a carrier's insurance due to several reasons:

1. Limited Coverage: Carrier insurance may not cover all types of damages or losses that may occur during transit.
2. High Premiums: The cost of carrier insurance can be expensive, potentially increasing the overall cost of transporting the goods.
3. Delayed Claims: It may take a long time for a claim to be processed and settled, resulting in delays in receiving compensation.
4. Subrogation: In some cases, the carrier's insurance may require the owner of the goods to give up their right to seek compensation from the responsible party.

Therefore, relying solely on a carrier's insurance may not provide sufficient protection for the owner of goods.