July 3, 2010 4:30 PM, EDT

Pa Lawmakers Move to Ban Indemnification Contracts

The Pennsylvania House has unanimously passed a bill that would ban indemnification contracts that some shippers and receivers force trucking firms to sign.

After a unanimous vote on June 22, the anti-indemnification bill was sent to the Senate for consideration.

In several states truckers have been required to sign contracts containing indemnification provisions or risk losing business.

Such contract provisions stipulate that the carrier, rather than the shipper or receiver, is liable for any incidents that occur on a shipper or receiver’s property.

“There are a number of guys who have indicated that they’ve been asked to sign contracts like this,” said Jim Runk, president of the Pennsylvania Motor Truck Association.

In recent years, American Trucking Associations and its local trucking affiliates have persuaded more than a dozen states to ban such contracts.