Freight Broker Insurance

Freight Broker Insurance

Protecting logistics operations, contracts, and cargo responsibility

Freight brokers and freight forwarders coordinate the movement of goods but often assume significant liability through contracts, shipping agreements, and regulatory requirements. Even without owning trucks, brokers face exposure related to cargo loss, errors in dispatch, contract disputes, and third-party claims. A single mistake in scheduling, documentation, or carrier selection can lead to costly financial loss.

Properly structured insurance helps protect your business, your contracts, and the flow of your logistics operations.

Key Risks in Freight Broker Operations

Freight brokers face exposure related to:

• Cargo loss or damage claims

• Errors in dispatch or documentation

• Contractual liability requirements

• Contingent cargo responsibility

• Cyber or data breaches

• Employee or office liability

• Regulatory and licensing issues

Losses can occur even when the broker does not own the truck.

Core Coverages for Freight Brokers

Freight broker insurance programs typically include:

Contingent Cargo Liability
Protects against cargo loss when the carrier’s insurance fails or is insufficient.

Errors & Omissions (Professional Liability)
Covers claims involving dispatch errors, paperwork mistakes, or failure to arrange proper transportation.

General Liability
Protects against bodily injury and property damage claims involving office operations.

Commercial Property
Covers office equipment, computers, and business contents.

Cyber Liability
Protects against data breaches, fraud, and electronic theft.

Surety Bond (BMC-84 / BMC-85)
Required federal bond for licensed freight brokers.

Umbrella / Excess Liability
Provides additional limits for severe claims.

What’s Commonly Overlooked

Freight broker insurance programs are often weakened by:

• Missing contingent cargo coverage

• Inadequate E&O limits

• No cyber protection

• Failure to review carrier contracts

• Gaps between broker and carrier coverage

• Not meeting shipper requirements

These issues often appear only after a claim or contract dispute.

Real-World Claim Examples

• Cargo is lost and the carrier’s policy denies coverage

• A paperwork error causes delivery delays

• A shipper files a claim against the broker

• A cyber scam results in stolen funds

• A contract requires higher limits than carried

Even one claim can disrupt operations.

Why Proper Placement Matters

Freight broker coverage varies based on:

• Type of freight handled

• Contract requirements

• Volume of shipments

• Use of independent carriers

• Federal licensing rules

• Customer insurance requirements

Improper placement can lead to uncovered losses or contract violations.

Our Approach

At Cory Washington & Co., we structure freight broker insurance programs based on the contracts you sign, the cargo you move, and the carriers you work with. We coordinate E&O, contingent cargo, cyber, and liability coverage to ensure your protection follows the entire logistics chain.

When your business moves freight, your protection must move with it.