QUESTION
We have a client who carries goods around NZ that he does not own, to show to retailers so that they may order the product directly from the supplier. The suppliers insure the goods whilst in our client's care.
He charges a fee for this service, but not specifically for the carriage; rather, for the service as a whole.
The question has arisen as to whether or not the CCLA would apply to him (is he a carrier as defined) and, in turn, whether or not he needs a carrier's liability policy.
The problem is that the GL PCCC extension does not respond to losses arising out of the use of a vehicle, so we can't necessarily rely on that.
The goods are never 'delivered'; rather, they are shown and taken back with the client to the next retailer.
EXPERT ANSWER: Crossley Gates, Glaistor Keegan
This is a complicated situation.
Your client is a carrier and subject to the CCLA regime. This makes the client strictly liable to the owner for damage to the goods, subject to the per unit limitation under the CCLA regime (assuming the default terms apply).
You say the owner has insured the goods (property damage policy?) while in your client's care. If this policy makes it clear that it is covering your client as well as the owner, this means your client can claim on that policy directly (as bailee) for any property damage
to the goods.
Therefore, to the extent any damage to the goods is covered under the property policy, your client can meet the strict liability under the CCLA regime to the owner by claiming on this policy. Note that the policy will likely have an excess, and to this extent, your client has no cover under the property policy and will likely remain liable under the CCLA regime to the owner. Further, to the extent the property policy does not insure the damage at all, the full liability under the CCLA regime remains.
If your client wishes to cover off this uninsured exposure under the property policy, your client needs the carrier's liability policy.
