Insurance companies often tell their clients that a paper shield is better than no shield at all. Waivers can be useful in limiting liability for a bailee. Like a shield, however, a waiver only protects certain vulnerable spots, leaving other areas open for attack.
1. A Waiver Doesn’t Cover All Liabilities
Waivers typically only cover basic reasons for property loss or damage. Most don’t cover fire, water or flood damage, theft, or a host of other things that can happen to a bailor’s cargo. If one of these disasters strike, a bailee could be left paying the full value of the lost property.
2. A Waiver Doesn’t Protect You From Hidden Costs
Even if the waiver covers the loss of property, that doesn’t signal the end of troubles for the bailee. For instance, the bailee is generally responsible for the clean-up and disposal of the damaged cargo. This can be as simple as a trip to the dump or may require the services of a hazmat company. In the event of a legal battle, you may not be able to recoup the cost of your defense.
Liability waivers have their uses, but they are far from a substitute for bailees coverage. A proper insurance policy from a reliable company provides you with significantly less vulnerabilities. Wouldn’t you like a suit of armor to go with your shield?