Freight Broker Insurance
FreightGuard’s sister company TransInsurers is a full-service insurance agency that specializes in products for the transportation industry. For nearly 20 years, TransInsurers has been providing competitively priced insurance to freight brokerages and forwarders across the United States. TransInsurers offers superior coverage to transportation brokers and freight forwarders at affordable rates. Following is an overview of the nature of coverage offered in the most common policies used by transportation brokers and freight forwarders.
General liability is a policy designed to respond to the liability a freight broker could assume other then liability to cargo or liability as result of a vehicle being driven. For example if a third party trucker or warehouse personal were injured as result of cargo being unloaded from a truck and the freight broker is dragged into a law suit. Defense coverage will normally be provided in most policy forms whereby attorney will be assigned by the insurance company to defend the freight broker/forwarder and incur those costs and if found liable respond to the agreed settlement amount up to policy limits.
Contingent Cargo Legal Liability
Contingent cargo legal liability is designed to protect a transportation broker or freight forwarder against the liability assumed when
making arrangements to move cargo for others. This policy provides coverage when a trucker’s primary motor truck cargo policy fails to assume the responsibility for cargo
loss or damage. These policies respond to the legal liability that transportation brokers and freight forwarders assume under law.
Principal benefits include:
- Claims Support: Attorneys and specialists in freight claims processing will provide support and council to assist in the collection of claims from truckers and their insurance carriers.
- Attorney Fees and Cost to Defend Your Firm From Suits Relating to Cargo Damage and Theft: If a trucker’s motor truck cargo policy fails to satisfy a legitimate cargo claim and a suit is instituted against the freight broker or forwarder, defense coverage is provided. The costs associated with these types of lawsuits can be significant, even if groundless. With this coverage, your firm will avoid incurring the legal expenses associated with defending or paying the cargo claim. The cost of the attorney’s fee, plus any settlements will normally be paid up to the policy limit.
Contingent Auto Liability
Contingent auto liability is designed to protect against the liability assumed by transportation brokers and freight forwarders when the truckers that they have under contract are involved in accidents where bodily injury, death or property damage take place. Defense coverage will normally be provided in most policy forms and will provide for an attorney to be assigned by the insurance company to defend the transportation broker or freight forwarder. The policy will cover the cost of the attorney and if found liable, will pay the agreed settlement amount up to policy limits.
Truck Broker Liability
Truck broker liability is designed for truck brokers, along with trucking operations, that have brokerage authority. It provides primary coverage – not the less adequate contingent auto liability that many companies presently have. The Truck Broker Liability policy is a hybrid primary liability policy that addresses the truck broker’s general liability arising out the ownership and use of a truck by the motor carrier of a brokered cargo move, in conformity with a written truck brokerage agreement.
Truck Broker Liability (Primary) coverage provides bodily injury and property damage liability coverage protecting the truck broker if they are brought into legal action caused by a truck accident involving a motor carrier to whom they brokered a load. Limits of Liability like an automobile liability policy apply to each accident with no policy aggregate. Defense costs are outside the limits of liability. The same coverage applys regardless of the type of cargo being hauled.
The broker bond is a surety bond in the amount of $75,000 is required by the FMCSA under 49 CFR Part 387.307 for all licensed brokers of property. A Form BMC-84 is used to make the filing with the FMCSA and remains in effect until cancelled by the bonding company.
The surety bond is used to ensure the financial responsibility of the broker by providing for payments to shippers or motor carriers if the broker fails to carry out its contracts, agreements, or arrangements for the supplying of transportation by authorized motor carriers.
Why Choose TransInsurers for Your Broker Insurance Needs
TransInsurers was started in 2002 to meet the insurance needs of the small to mid-sized trucking company. We realized how difficult it was for people, who are on the go, to find an insurance agent who is responsive to your needs and that provides a full line of coverage applicable to the busy trucking professional. Our insurance specialists are continually looking for more markets and competitive pricing to better serve you. We want to provide you with the best service in the industry!
Contact one of our licensed insurance agents today for a free no obligation broker insurance quote at (866) 748-4200 or complete your application now!