Ask X3What does 49 CFR 387.13 (Fiduciaries) require?
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Short answer
49 CFR 387.13 requires that the coverage of fiduciaries attach at the moment of succession of such fiduciaries.
The rule says
"The coverage of fiduciaries shall attach at the moment of succession of such fiduciaries." (49 CFR 387.13)
"The terms insured and principal as used in a certificate of insurance, surety bond, and notice of cancellation, filed by or for a freight forwarder, include the freight forwarder and its fiduciary (as defined at 49 CFR 387.319(a)) as of the moment of succession." (49 CFR 387.417(a))
In plain English
This means that when a fiduciary takes over, the insurance coverage or surety bond must be in place immediately, with no gap in coverage. In practice, this requires careful planning and coordination to ensure that the new fiduciary has the necessary coverage in place from the moment they assume responsibility. This is particularly important for freight forwarders, who must ensure that their fiduciaries are included in their insurance and surety bond filings.
What to do
- Review your insurance and surety bond filings to ensure that they include your fiduciaries.
- Coordinate with your insurance provider to ensure that coverage is in place for your fiduciaries from the moment of succession.
- Verify that your fiduciaries are defined in accordance with 49 CFR 387.319(a) and are included in your certificate of insurance, surety bond, and notice of cancellation filings.