Coverage Center
Freight Broker Liability
Insurance considerations for businesses that arrange transportation, manage freight relationships, and coordinate the movement of cargo.
Broker Exposures
Insurance Built for Freight Intermediaries
Freight brokers and logistics businesses can face exposures that differ from motor carriers. Contracts, carrier selection, cargo claims, customer expectations, and data handling can all shape the insurance conversation.
Contractual Liability
Customer and carrier agreements may create obligations that should be reviewed alongside the insurance program.
Cargo and Operations
Contingent cargo, general liability, and other options may be relevant depending on the services provided and contractual responsibilities.
Coverage Considerations
Potential Insurance Components
Freight Broker Liability
Coverage options may address certain allegations arising from brokerage operations, subject to policy terms and underwriting.
Contingent Cargo
May be considered for certain cargo-loss exposures when a contracted carrier’s coverage is unavailable or insufficient, subject to policy terms.
General Liability
May address qualifying third-party bodily injury, property damage, and premises-related claims outside transportation operations.
Errors & Omissions
Professional liability options may be available for qualifying allegations tied to brokerage or logistics services.
Cyber Liability
May help address certain data, network, and privacy exposures where appropriate for the business.
Umbrella & Excess
Additional liability limits may be considered above qualifying underlying policies when available.
Underwriting
What Underwriters May Review
A clear picture of the brokerage operation helps determine which coverage options and markets may be appropriate. Requirements vary by carrier and account.
Business Model
Services offered, freight types, annual revenue, territories served, and whether the business also operates vehicles or warehouses.
Contracts & Controls
Customer and carrier agreements, carrier-selection practices, certificates, and documented operational procedures.
Claims & Cargo
Prior claims, cargo values, shipment volume, commodities, and any loss-prevention or verification practices.
Data & Technology
Systems used to manage loads, payments, customer information, and cyber-security controls where relevant.
FMCSA Financial Responsibility
Insurance Is Not a Broker Bond or Trust
Freight brokers may be subject to separate FMCSA financial-responsibility requirements. The BMC-84 surety bond and BMC-85 trust fund are financial-security arrangements required for certain brokers; they are not liability insurance policies.
Broker liability, contingent cargo, general liability, professional liability, cyber, and umbrella or excess coverage are separate insurance considerations. The right combination depends on the services provided, contracts, risk profile, and available programs.
BMC-84 and BMC-85 requirements should be reviewed separately from an insurance program.
Important distinction
RIG is an insurance brokerage, not FMCSA or a government agency. Regulations and requirements can change; consult FMCSA and qualified professional advisors regarding your operation’s obligations.
Coverage Summary
Important Coverage Information
Coverage descriptions are general summaries only. Actual coverage is subject to the terms, conditions, exclusions, limits, and endorsements of the applicable insurance policy.