What Does Common Carrier Mean?
A common carrier refers to a commercial individual, entity, or organization that transports people or goods by land, sea or air in exchange for payment. Unlike a contract or private carrier, it caters to the general public. Some states require a license for legal operation.
Insuranceopedia Explains Common Carrier
Examples of common carriers are taxi companies, trucking firms, courier services, towing companies, air freights, airlines, railway trains, shipping companies, transport buses, public utility vehicles or jeepneys.
This term is often referenced in insurance claims involving a common carrier incident, such as a plane crash, shipwreck, or a bus accident. For example, in a life insurance policy, an accidental death benefit rider may grant an additional death benefit to the beneficiary in case the insured passes due to a common carrier accident.