Common Carrier

What Does Common Carrier Mean?

A common carrier is a commercial individual, entity, or organization that transports people or goods by land, sea, or air in exchange for payment. Unlike contract or private carriers, common carriers serve the general public. In some states, a license is required for legal operation.

Insuranceopedia Explains Common Carrier

Examples of common carriers include taxi companies, trucking firms, courier services, towing companies, air freights, airlines, railway trains, shipping companies, transport buses, and public utility vehicles, such as jeepneys. Trucking firms and other for-hire transport operators typically need commercial trucking insurance to cover liability for the cargo and passengers they carry.

The term “common carrier” is often referenced in insurance claims involving incidents like plane crashes, shipwrecks, or bus accidents. For instance, in a life insurance policy, an accidental death benefit rider may provide an additional death benefit to the beneficiary if the insured dies as a result of a common carrier accident. Because these riders can vary widely between providers, it is worth comparing the best life insurance companies to see which ones offer the most favorable common carrier accident terms.