Industries · Trucking and transportation

Insurance for freight brokers.

Contingent cargo, contingent auto liability, general liability, and errors and omissions for brokers who arrange the freight but do not run the trucks. The $75,000 surety bond, too.

What freight brokers usually carry

Contingent cargo
Contingent auto liability
General liability
Errors and omissions
Broker surety bond, $75,000
Crime and social engineering fraud
Hired and non-owned auto

Watch for these in a freight broker policy

Contingent means secondContingent cargo pays only when the carrier’s own cargo policy does not, and only if you are legally liable. It does not replace checking the carrier’s coverage.
Carrier selection rulesMany contingent policies require you to check each carrier’s authority, insurance, and safety record before the load. Skip the check and the claim can be denied.
Contracts that make you the carrierSome shipper contracts hold you liable for full value, as if you ran the truck. Contingent cargo may not cover liability you take on by contract.
Fictitious pickupsA load handed to a fake carrier is often excluded or capped under cargo forms. Ask about fictitious pickup coverage by name.
Double brokeringA load your carrier quietly hands to another carrier can land outside your coverage. Forbid it in your carrier agreement and watch for it.

What shippers ask freight brokers for

Contingent cargoOften $100,000, and more for high-value freight.
Contingent auto liabilityOften $1M, for crashes by carriers you book.
Your bond and authorityProof your authority is active and your $75,000 bond is in force.
Additional insuredOn your general liability, and sometimes on contingent auto.

Questions freight brokers ask

Straight answers.

The questions we hear most, answered plainly.

Do freight brokers need their own cargo insurance?

Not by law, but most shippers expect contingent cargo. It is what pays when a carrier’s cargo policy denies the claim and the shipper comes to you.

Is the $75,000 bond insurance?

No. The bond pays carriers and shippers you fail to pay, and then the surety collects from you. It protects them, not you.

What is contingent auto liability?

It defends you when you are sued over a crash by a carrier you booked, often on a claim that you chose the carrier carelessly. It sits behind the carrier’s own auto policy.

Does any policy cover a payment sent to a scammer?

Crime coverage with social engineering fraud can, when someone posing as a carrier or shipper talks you into sending money. Cargo and liability policies will not.