Hello and thank you for reaching out! I’m Jon, a licensed attorney with over 13 years of experience, and I’m here to help.

I know legal matters can feel overwhelming, but you're in good hands. I’ll do my best to make things clear and provide you with the guidance you need. Let’s work together to find the right solution for your situation.

I assume you are the merchant/seller here?

Ok, and who was this contractor? Just an independent driver your company uses?

And their own vehicle?

Do you know if he has any insurance that would cover this?

Do he have business insurance for transporting to cover any losses like this?

I think I have all the information I need, but is there anything else you'd like to add before I get started on your answer? If not, I'll start working on a response for you right away.

Even without a signed agreement, an implied contract likely exists, and your company may still be legally responsible. If you're acting as a common carrier (offering transport to the public), you're held to a higher standard and liable unless the damage was beyond your control. Private carriers, who work for specific clients, are usually only liable for their own negligence.

Even if your contractor properly wrapped and secured the statue, that doesn’t automatically protect you from liability. Since you hired the contractor, the customer’s claim is with your company, not them. Any issue between you and the contractor is separate.

While the driver's acknowledgment of responsibility can be a valuable piece of evidence for you in a potential claim against the independent contractor, it does not necessarily release you from your initial liability to the customer. Think of it this way: the customer has a claim against the entity they hired (your company), and your company, in turn, might have a claim against its independent contractor based on that acknowledgment.

The acknowledgment essentially strengthens your position in a potential subrogation or indemnification claim against the independent contractor, meaning your insurance company, after paying the customer, could pursue the independent contractor for reimbursement.

Start by thoroughly documenting the damage—photos, videos, notes, and any proof of the statue’s condition before transport. Get a written statement from the contractor and track all communications with the customer. Then notify your insurance company right away, and don’t admit fault or make promises until they’ve reviewed the situation.

Ask for the statue’s value, purchase details, and whether their insurance might help. Let them know you’re investigating and have contacted your insurer. Also, look into repair options—if the arm can be professionally reattached, that may be the best solution.

Depending on the outcome, your insurance may cover the damage, or you might negotiate a settlement with the customer. If not, they may pursue legal action. Whether a court would grant repair versus replacement is questionable at that cost.

And to prevent future issues, use written contracts that clearly define responsibilities, item value, and damage procedures—especially for high-value or fragile items. And contracts with any independent contractors you use.

The contractor is responsible to you, not the customer; the customer hired you. You may be able to go after the contractor for negligence in the transport, but the customer can go after you as they hired and paid you.

And if you have insurance, this is something you want to report to them. They may cover it and go after the contractor for that payout cost.

That is the route you will have to go, as the customer hired you; the insurance can go after the contractor if the insurance has to pay the customer out.

We cannot give legal advice here in chat.

If the insurance is covering it, they will decide the amount and pay out; then they will go after the contractor for that amount (subrogation). You need to know that part first if they are going to cover it or not before you can do anything further.

Then you will need to get your own local lawyer involved and deal with the insurance company. If you want to deny any payout to anyone.

When property is transported interstate, meaning across state boundaries, the primary legal framework that governs liability for loss or damage is the Carmack Amendment to the Interstate Commerce Act. This federal law largely supersedes (preempts) state laws regarding the rights and liabilities of interstate carriers.

This means that, even though you are in Texas and your client is in New York, the laws of either state regarding contract or negligence may not be the primary determinant of liability. Instead, federal law provides the sole remedy for interstate shippers and consignees for recovery for loss, damage, and delay of shipments. So you may end up in court in NY; likely federal court.

Without a contract, there is really nothing guiding those terms; that is why you need to use contracts with customers laying these issues out. Like mitigating of damages, jurisdiction (where you can be sued), insurance, liability, etc. That would be up to a judge based on the evidence if it can be fixed and what cost if you cannot settle before it gets into court.

The judge determines what is reasonable in a repair versus replace situation (or your insurance company may if they settle). Do you have any other questions about the law related to this issue? I'm here to assist you, so don't hesitate to reach out with any further inquiries. While I might not be available when you return, I will respond as soon as I can.

I do hope the information I provided was helpful and addressed your question. If there's anything else you need, please don't hesitate to reach out—I’m always happy to assist. Wishing you a fantastic day ahead!