What type of carrier operates under strict liability and defenses?

Study for the Certified Insurance Counselor Commercial Multiline Exam. Utilize interactive flashcards and multiple-choice questions, all with detailed explanations. Prepare thoroughly for your exam!

A common carrier operates under strict liability and defenses, which means that they are held to a higher standard of care in their transportation services. This legal principle means that common carriers are liable for any loss or damage to the goods they transport, regardless of whether they acted with negligence or not.

Common carriers, such as freight companies and bus lines, are responsible for the safe transport of goods or passengers, and their liability does not generally allow for typical defenses such as “act of God” or “contributory negligence” unless specified in the law or contract. This contrasts with private carriers and contract carriers, which may have more flexibility and can negotiate the terms of liability in their contracts. Private carriers usually transport their own goods and may set their own rules regarding liability, while contract carriers are those that transport goods under specific contracts and have agreements that outline the terms of carriage, including liability limitations.

Thus, the strict liability imposed on common carriers reflects their role as public entities that ensure basic levels of trust and reliability in their services, safeguarding the interests of the public who utilize their transportation services.

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