Common Carrier

In the world of insurance, and law in general, a Common Carrier is an entity whose business is to transport people or goods for the general public for a fee.

The term is particularly important in Accidental Death and Dismemberment (AD&D) or travel insurance policies because many plans pay a higher benefit (sometimes double or triple) if an accident occurs while the policyholder is a passenger on a common carrier.

Key Characteristics

To be legally classified as a common carrier, a service must meet specific criteria:

• Public Access: It must offer its services to the general public, not just a private group.

• Fixed Routes & Schedules: Most (though not all) operate on a set schedule or between established points.

• Standard Rates: They charge a published or standard fee for their services.

• Higher Standard of Care: Legally, common carriers are held to a higher standard of safety compared to private carriers because the public is trusting them with their lives.

  
  

Common Examples

Category	Examples
Air Travel	Commercial airlines (e.g., Delta, United, Southwest).
Land Travel	Public buses, trains (Amtrak), subways, and streetcars.
Water Travel	Commercial cruise ships and public ferries.

What is Not a Common Carrier?

Insurance companies are often very specific about what is excluded from this definition. Generally, these do not qualify for "common carrier" benefits:

• Taxis & Rideshares: In many policies, Uber, Lyft, and standard taxis are excluded.

• Private Charters: If you rent a private jet or a limo for just your party, it isn't "open to the public."

• Personal Vehicles: Your own car or a friend's vehicle.

• Company Vehicles: A shuttle bus owned by a private employer for its staff.

Why the Distinction Matters

If you are reviewing a policy, look for a "Common Carrier Benefit" or "Double Indemnity" clause. Because common carrier accidents (like a plane crash or train derailment) are statistically much rarer than car accidents, insurers are willing to offer significantly larger payouts for these specific events to make the policy more attractive.