The Legal Definition Of Common Carrier And Its Impact On Insurance Policies

what is a common carrier in insurance terms

A common carrier is a commercial individual, entity, or organisation that transports goods or people from one place to another in exchange for payment. Unlike a contract or private carrier, common carriers cater to the general public. In the US, common carriers are also defined as telecommunications services and public utilities.

Examples of common carriers include taxi companies, trucking firms, courier services, towing companies, airlines, railway trains, and shipping companies.

The term 'common carrier' is often referenced in insurance claims involving incidents such as plane crashes, shipwrecks, or bus accidents.

Characteristics Values
Definition A commercial individual, entity, or organization that transports people or goods by land, sea or air in exchange for payment
Examples Taxi companies, trucking firms, courier services, towing companies, air freights, airlines, railway trains, shipping companies, transport buses, public utility vehicles, jeepneys, UPS, FedEx
Insurance Claims Involves incidents such as a plane crash, shipwreck, or bus accident
Insurance Policies Accidental death benefit rider, transportation insurance, parcel post insurance, cargo liability insurance
Availability Offers services to the general public without discrimination
Regulation Must obtain a license or permit to operate legally and are subject to state and interstate regulations and government scrutiny
Responsibility Liable for any loss, damage, or delay of goods during transport

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Common carriers are liable for any loss of items during transport

A common carrier is a commercial individual or organisation that transports people or goods by land, sea, or air in exchange for payment. Common carriers include taxi companies, trucking firms, courier services, towing companies, airlines, railway trains, and shipping companies.

The liability of a common carrier is often determined by contract. The shipper and carrier may agree to limited liability for the carrier. For instance, the carrier may only be liable for damage that exceeds a certain value or occurs during a specific time frame. If the carrier is not liable for a particular event, the shipper may still hold them liable if the event was caused by the carrier's negligence.

It is important to note that the laws and regulations governing common carriers can vary depending on the means of transport used. For example, sea carriers may follow different rules compared to road or railway carriers.

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Common carriers must be \fit, willing, and able\ to provide services

A common carrier is a commercial individual, entity, or organisation that transports people or goods by land, sea, or air in exchange for payment. Common carriers are also known as public carriers and are liable for any loss or damage to goods during transport.

Common carriers are subject to special laws and regulations that differ depending on the means of transport used. For example, sea carriers often do not follow the same set of rules as road or railway carriers. In common carrier law, both jurisdictions and international law apply.

A common carrier is defined by US law as a private or public entity that transports goods or people from one place to another for a fee. The term is also used to describe telecommunications services and public utilities.

The word "common" is an important distinction here. A common carrier, such as a bus service, offers its services to the general public, unlike a private carrier that might be available only to specific clients on a contractual basis. A utility may be considered a common carrier under the law because it makes no distinction among its customers.

Common carriers provide essential public services and thus can face more state and interstate regulations and government scrutiny. They must demonstrate to the regulator that they are "fit, willing, and able" to undertake the services for which they have been granted authorization. This means that common carriers must show they have the capacity and capability to provide the services they have been authorised to offer.

For instance, common carriers must have the necessary resources, infrastructure, and personnel in place to carry out their services effectively. This includes having a fleet of vehicles or vessels that are in good condition and meet the required safety standards. They must also have a competent and adequately trained staff who can handle the transportation of goods or people in a safe and efficient manner.

Being "fit, willing, and able" also implies that common carriers must be properly licensed and authorised to operate. They must comply with the relevant laws and regulations governing their industry and adhere to established routes, time schedules, and pricing structures.

Furthermore, common carriers must be able to demonstrate financial stability and viability. This is crucial as it ensures they can fulfil their obligations and cover any potential liabilities that may arise, such as compensation for lost or damaged goods.

Overall, the requirement for common carriers to be "fit, willing, and able" ensures that they can provide reliable, safe, and efficient services to the public. It helps maintain high standards in the industry and protects the interests of consumers who rely on these essential services.

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Common carriers transport people or goods by land, sea or air

A common carrier is a commercial individual, entity, or organisation that transports people or goods by land, sea, or air in exchange for payment. The term “common” is important here, as it distinguishes common carriers from private carriers. Common carriers, such as bus services, offer their services to the general public, whereas private carriers may only be available to specific clients on a contractual basis.

Common carriers are subject to various laws and regulations, depending on the mode of transportation used. For example, sea carriers may follow a different set of rules compared to road or railway carriers. They are also liable for any loss or damage to goods during transport and must demonstrate that they are "fit, willing, and able" to provide the authorised services.

Some examples of common carriers include taxi companies, trucking firms, courier services, towing companies, airlines, railway trains, shipping companies, and public transport buses. These carriers play a crucial role in facilitating the movement of people and goods, often along regulated routes and schedules, to meet public demands.

The concept of common carriers is often referenced in insurance claims involving incidents such as plane crashes, shipwrecks, or bus accidents. Certain types of insurance, such as common carrier baggage insurance offered by credit card issuers, specifically provide coverage for luggage loss, damage, or theft while using a common carrier like an airline.

In summary, common carriers are essential in transporting people or goods by land, sea, or air, operating within a regulatory framework that ensures the safe and reliable provision of their services to the general public.

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Common carriers cater to the general public

A common carrier is a commercial individual, entity, or organization that transports people or goods by land, sea, or air in exchange for payment. The term "common" is significant as it indicates that these carriers offer their services to the general public. This is in contrast to private carriers, which only serve specific clients on a contractual basis.

Common carriers, such as taxi services, trucking companies, rail freight services, and airlines, provide essential public services and are open to anyone willing to pay the specified fees. They are regulated by the state and are subject to government scrutiny due to their role in meeting public needs.

The distinction between common and private carriers is important in the context of insurance. When an individual purchases insurance, they are interacting with an insurance carrier, or insurance company. In the event of an accident or incident involving a common carrier, such as a plane crash or a bus accident, insurance claims and benefits may come into play. For example, common carrier baggage insurance offered by credit card issuers covers the loss, damage, or theft of luggage during transport on an airline.

Furthermore, in the context of life insurance, an accidental death benefit rider may provide an additional death benefit to the beneficiary if the insured passes away due to a common carrier accident. This highlights how common carriers cater to the general public and how their services are integrated into various aspects of personal and commercial insurance.

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Common carriers are subject to special laws and regulations

In the United States, common carriers are defined by law as private or public entities that transport goods or people from one place to another for a fee. They are subject to state and interstate regulations and government scrutiny because they provide essential public services.

Common carriers are liable for injuries to passengers and pedestrians caused by a carrier vehicle. They are also liable for any probable loss of items during transport.

In the United States, telecommunications services are classified as common carriers, as are many oil and gas pipeline operators.

Frequently asked questions

A common carrier is a commercial individual, entity, or organization that transports people or goods by land, sea, or air in exchange for payment. Common carriers cater to the general public and include taxi companies, trucking firms, courier services, towing companies, airlines, and shipping companies.

Unlike a private carrier, a common carrier must provide its services to anyone willing to pay its fees, unless there are grounds for refusal. A private carrier may only be available to specific clients on a contractual basis.

Examples of common carriers include taxi services, trucking companies, rail freight services, waste removal services, couriers, vehicle towing services, and air freight services. Telecommunication services and public utilities like water and power companies are also considered common carriers.

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