Broker Bond: A surety bond used to ensure the financial responsibility. It can provide protection for payments to shippers or motor carriers in the event that the broker fails to carry out its contracts, agreements, or arrangements. The FMCSA requirement is $75,000.
Cargo: Provides more of a true cargo coverage form for a freight broker without the subrogation aspect of a contingent cargo coverage.
Contingent Cargo: This coverage applies when a trucking company fails to pay a valid cargo claim assuming the freight broker does not accept additional contractual liability.
Contingent Auto Liability: Insurance coverage for freight brokers that can assist with damages and/or defense costs in the event the freight broker is also named a party after damage or bodily injury to a third-party by a motor carrier.
Errors & Omission Insurance: Financial loss incurred by a freight broker’s customer caused by negligence, error, or omission on the part of the broker or 3PL in the normal course of freight brokerage business.
Umbrella and Excess Coverages : Insurance coverage for the liability of a commercial venture above a specific amount set forth in a basic policy issued by the primary insurer or a self-insurer for losses over a stated amount; or an insured or self-insurer for known or unknown gaps in basic coverages or self-insured retentions.
General Liability: Freight brokerage insurance coverage for premises and incidental exposures
Property Insurance: Insurance that protects physical property and equipment against a loss from a covered peril
Trailer Interchange: Insurance that can be purchased to supplement the coverage of the asset-based carrier
