Freight Broker Insurance
Freight Broker Insurance serves as a valuable tool in securing loads and larger shipping clients.
Don't go without freight broker insurance, especially in today's industry/market. Freight Brokers without the proper coverage increase the risks of being targets of lawsuits threatening financial distress or ruin.
Types of Freight Broker Coverages
Click on any of the coverages below to learn more.
Freight Broker Surety Bonds - BMC-84
The FMCSA requires this surety bond for ALL Licensed Freight Brokers, but it is not insurance. It is intended to protect motor truck carriers or shippers that a freight broker hires. The minimum bond amount required is $75,000.
All Risk Shipper's Interest
Provides primary cargo coverage that responds to the physical loss or damage to cargo. Claims under this policy can be settled directly with the Insurers without having to first collect on a cargo claim from the motor carrier. This is considered “Primary Cargo Coverage”.
Freight Broker Excess Liability
Provides increased limits to Freight Broker Professional Indemnity, Freight Broker Auto/Third Party Legal Liability, or Freight Broker Commercial General Liability. Higher limits are an increasingly attractive value-added service freight broker operations provide because of the relatively low limits of only $1MM that most motor carriers have in place.
Professional Liability Insurance (Errors & Omissions)
Covers errors and mistakes to protect against litigation and financial loss arising from negligence. This provides additional peace of mind to shipping clients that their interests are protected.
Freight Broker Contingent Cargo
This coverage is triggered by the loss of or damage to the cargo and does not require that anyone is liable. It is a critically important and more customer service-friendly form of cargo coverage for customers that may demand reimbursement for any cargo loss or damage irrespective of liability.
Per Shipment Cargo (PSC)
Provides an excess line of coverage for specific shipments while transporting that particular cargo. The coverage will apply to Insured Goods after departing from their shipping point while in transit to their final destination as detailed in the bill of lading, tariff, shipping receipt, or contract of carriage. Some exclusions may apply depending on your primary provider and/or commodity requiring coverage.
Defense Coverages
Freight Broker Auto/Third Party Legal Liability (Defense)
Provides defense coverage to protect the Freight Broker against the costs of defense and litigation stemming from Bodily Injury, Death, or Property damage. It protects against insolvency and/or destruction of the business model. This is one of the most important coverages to have, and more shippers are now requiring it from freight broker operations.
Freight Broker General Liability (Defense)
Provides defense coverage to protect the Freight Broker when drawn into litigation as a result of Bodily Injury, Death, or Property Damage, which allegedly occurred on the covered premises of the Freight Broker.
Freight Broker Cargo Legal Liability (Defense)
Provides defense coverage to protect the Freight Broker when drawn into litigation by 3rd parties, due to cargo loss or damage. If transporting high-value cargo, it is highly recommended this coverage be in place. This defense policy is not intended to roll over to pay a cargo claim when the motor carrier fails to respond.
