Partain Trading Company

[Tony Partain]

Hello Everyone

I feel the need to address a couple of issues that have arisen out of the accident with a carrier that had the load of aircraft on board.

Partain Trading Company has been in business for 19 years and in this time period we have moved over 20,000 shipments with an estimated 45,000,000 load miles and in this time period there have been TWO accidents involving carriers. One in 1998 involving a load of produce and the recent one involving a load of aircraft. The produce load was settled in 45 days. Typical of most claims.

In regards to shipment of aircraft. We have the proper insurance documentation in place. The insurance agent provided us with a certificate stating the carrier had broad form cargo coverage with Partain Trading Company Inc named as additional insured. The problem is that the insurance agent provided the carrier with insurance that DID NOT cover airplanes but provided Partain Trading Company documentation that DID cover aircraft. We have a legally binding documentation with the insurance agent. The insurance carrier refused the claim because the agent wrote a policy that did not cover aircraft. But since the insurance agent made a mistake on the insurance certificate issued to Partain Trading Company the Errors and Omissions coverage from the agent pays the claim. I know that one of the customers has settled. I have spoken with the claims adjuster and they have send out the release forms to the other two on the load will be sending the pay offs out this week or next.

In the 19 years we have been in business this is the first time this has happened. If you are going to ship anything make sure that you have an Accord Certificate from the insurance agent and check it over, failure to do so can cost you the price of the cargo if anything happens. As a policy we required that all carriers name us as additional insured to maintain coverage for our customers.

We have a very good contingent of carriers that have provided great service over the years. Some we have been doing business with since 1994. Some as big as 400 trucks. Some that are specialized aircraft haulers. The majority of our customers have been very satisfied with our service over the years and with over 20,000 shipment there will be a few that are not happy. For those that were not satisfied for whatever reason sorry it didn't work out to your expectations. For the satisfied customers Thank you for your business.

I also want to address one more item. It’s been said that we don’t have insurance. That is incorrect. We are named as additional insured on the policy of EVERY carrier that we use to ship aircraft. Insurance is in place to cover your shipment.

The big picture is that we are here to fight another day. Mike Cobb who was killed in the accident is not. Life can be too short so keep your eye on the ball and what really matters. Live life as if was your last day. Try to be considerate. Take care of your family and yourself.

Build well and fly safe.

[Phil]

Tony,

First, and most importantly, I'm glad your customers were made completely whole at the end of the day.

It's a shame that the insurance agent's error caused all this hassle instead of making the initial claim simple and efficient. Fortunately the insurance company was willing to recognize the error and correct it. Thanks for sticking with the customer's claims and fighting on their behalf to get it through E&O process. Well done.

With the exception of not having Mike back, you couldn't for a better outcome.

Thanks again for the update.

Phil

[Mike S]

Tony, it is good to hear that you have finally gotten through the quagmire, and can now talk about this publicly.

I am happy for your customers who will now get the settlement that they deserve, and I am sad that you had to go through this, including the unwarranted bashing you received here.

Mostly, however I am sorry for Mike and his family, and the fact he lost his life due to forces beyond his control............

[rv7boy]

Tony,
I am reminded often of the satisfaction of dealing with you a few years ago when my wing kit needed to be shipped from Oregon to Alabama. I couldn't imagine a smoother shipment.

I can't remember the driver's name, but I am still impressed how he sized up my angled driveway and on the first attempt, backed up that extra long trailer all the way to the back of my driveway!

This post isn't about insurance; it's not because my shipment didn't need to have a claim filed.

Thanks for the excellent service you provide.

[scsmith]

Thanks for keeping us posted. Glad the E&O worked. Wew!

[BobTurner]

Phil,

As I read the story the insurance company was NOT willing to make good on the agent's error. I personally find it troubling how some modern companies will use every legal loophole they can to get out of their promises.

Fortunately the agent was responsible and carried his own "errors and omissions" insurance, which paid for the damages. That is how I read this.

[Phil]

That may be true that is was E&O coverage supplied by the agent as opposed to a back-stop policy within the insurance company. I don't know and Tony can comment on that if he would like.

But at the end of the day, I am happy his customers are getting all of their money back to pay for the products they lost in the accident. It could have turned out much worse.

Regardless of how the story read, this was a good ending to the book.

[Tony Partain]

Bob

As I read the story the insurance company was NOT willing to make good on the agent's error

This was never the case. The insurance company refused the claim The Errors and Omissions policy picked up the claim.

[BobTurner]

My apologies. I misunderstood your first post. ("The insurer refused the claim"). But I am happy it all has been worked out.

[strahler13]

So, as I read this, am I to assume the carrier's customers were not injured and made whole? I do not know this for certainty. Can the carrier confirm this?

Mark