Legislation that extends the unfair contract terms regime to include small businesses could have a dramatic effect on Australian transport operators, Berkshire Hathaway Specialty Insurance (BHSI) says.

The changes take effect on November 12, and a BHSI report warns they may spell the end for the “all care, no responsibility” consignment note.

Historically, widespread use of the note has favoured transport operators by excluding all liability, including where damage to goods has been caused by negligence or recklessness.

However, this may well be in breach of the new legislation, according to BHSI Head of Transport and Logistics Barton Phillips.

“Transport operators are going to have to review their liabilities,” he told insuranceNEWS.com.au.

“But they need to be careful how they do that, or it could be too onerous. Looking at how it works internationally, there is often a compromise to limit that liability.”

Mr Phillips says here will be a knock-on effect to insurance.

“Transport operators will need to ensure their insurances are sufficient to cover this enhanced level of liability.

“Insurers will need to develop products that are more conscious of contractual liability, and better specialist claims management and underwriting skills will be required.”

Click here for the full report.