When Their Coverage Fails, Yours Shouldn't.
Backstop protection when a hired carrier's auto policy doesn't respond
Contingent auto liability insurance protects freight brokers, logistics providers, and shippers against auto liability claims when a motor carrier they hired has primary auto coverage that fails to respond. It is "contingent" because it sits behind the hired carrier's own policy and drops down only when that policy denies the claim, is rescinded, has lapsed, is exhausted, or never existed. When a serious truck accident occurs, plaintiffs routinely name the broker or shipper alongside the carrier — and this coverage answers the exposure that an ordinary business auto policy was never designed to cover.
Because it responds exactly when the hired carrier's insurance does not, contingent auto is a core piece of any brokered-transportation program.
What Contingent Auto Liability Covers
Contingent auto liability typically responds to:
Drop-Down Primary Coverage — Auto liability for an accident involving a hired carrier when that carrier's primary policy denies, is rescinded, lapses, or is insufficient.
Vicarious & Broker Liability — Claims brought against the broker or shipper arising from the hired carrier's auto accident, including negligent-selection theories that pull in the party who arranged the load.
Defense Costs — Legal defense for covered claims, often the largest early cost in catastrophic trucking litigation.
Gap Between Filings & Reality — Claims where a carrier's filed coverage looked valid on paper but failed when the loss actually occurred.
What It Does Not Cover
Contingent auto liability commonly excludes:
Autos the insured owns, leases, or hires directly (covered under primary commercial or hired-and-non-owned auto)
Claims where the hired carrier's primary auto policy responds in full
Cargo loss or damage (covered under contingent cargo)
Intentional or fraudulent acts
Operations outside the policy's described brokered-transportation activities
Coverage depends on how the policy defines a covered "hired carrier" and the triggering failure.
Who Needs Contingent Auto Liability?
This coverage is important for:
Freight brokers and transportation brokers
Third-party logistics providers (3PLs)
Shippers and manufacturers that arrange their own carriers
Motor carriers that interline or subcontract loads to other carriers
If your business arranges freight on trucks you don't own, you carry this exposure.
How Coverage Is Structured
Contingent auto liability is usually written with:
A per-accident limit sitting excess of and dropping down behind the hired carrier's primary
A requirement that hired carriers carry minimum auto limits and valid filings
Coordination with contingent cargo and truck broker liability in one program
Conditions around carrier vetting and documentation
Underwriting focuses heavily on your carrier-selection and monitoring process.
Real-World Claim Examples
A hired carrier's insurer rescinds the policy for a misrepresentation after a fatal crash
The trucker's auto limits are exhausted and the broker is pulled into the judgment
A carrier's coverage had lapsed the week the accident occurred
A plaintiff alleges the broker negligently selected an unsafe carrier
In each case, the broker's own general liability would not respond — contingent auto can.
Why Proper Placement Matters
Contingent auto coverage varies widely based on:
The drop-down trigger language and how "failure to respond" is defined
Minimum carrier-limit and filing requirements
How vicarious and negligent-selection claims are treated
Coordination with the rest of the transportation program
A poorly structured contingent auto policy can leave a gap exactly where catastrophic trucking verdicts land.
Our Approach
At Cory Washington & Co., we build contingent auto liability into a coordinated transportation program alongside contingent cargo and truck broker liability, and we align it with how you actually vet and monitor carriers. For the broader operation, see our freight broker insurance page.
Arranging the load shouldn't mean absorbing the carrier's risk.
All insurance descriptions on this website are provided by Cory Washington & Co. LLC strictly for general informational purposes. They are not intended to be, and should not be relied upon as, legal, financial, or insurance advice. The information presented is general in nature and does not guarantee the availability, terms, conditions, or scope of any insurance coverage. Actual coverage is determined solely by the specific policy language issued by the insurer and remains subject to underwriting approval. Nothing on this website creates or implies an agent-client relationship, binds coverage, or alters any existing policy. Cory Washington & Co. LLC expressly disclaims any liability for actions taken, or not taken, based on the content provided here. For advice regarding your particular situation, please consult directly with a licensed insurance professional at Cory Washington & Co. LLC or another qualified insurance professional, and always review your policy documents in full.
See what to confirm in a contingent auto liability policy — what's standard, what's often limited, and what to add if needed — plus the gap most often missed, in the Contingent Auto Liability Policy Feature Checklist.
Complete the Contingent Auto Liability Supplemental online in a few guided steps, download the fillable PDF, or browse all applications.
Frequently Asked Questions
How do I get contingent auto liability insurance through Cory Washington & Co.?
Request a quote or contact our team. We start with a short conversation about your operations, analyze your exposures, then negotiate contingent auto liability insurance across multiple carriers that compete for your account and present options with the trade-offs explained. Cory Washington & Co. LLC is licensed in all 50 states.
How are contingent auto liability insurance premiums priced?
Premiums vary from business to business. The main drivers of contingent auto liability insurance pricing are the nature of your operations, your revenue and payroll, your loss history, and the limits you carry. Rather than quote a flat figure, we negotiate across several markets and walk you through the options, so you only pay for the protection you actually need.
Is contingent auto liability insurance mandatory?
Requirements vary. Contingent auto liability insurance may be mandated by statute, or required under your contracts, leases, or loan agreements — and in many cases it is simply prudent given the risks involved. We look at your specific obligations and exposures, then recommend the coverage and limits that fit.
What if another agency has already declined or non-renewed my coverage?
Difficult, specialty, and previously-declined placements are a core part of our work. We access excess & surplus (E&S) and specialty markets that many generalist agencies cannot, and we explain the trade-offs clearly so you can decide with confidence.
Available in all 50 states. See how requirements differ in California, Texas, Florida, New York, or choose your state.