Freight Brokers & Freight Forwarders

Freight Broker & Freight Forwarder Insurance

Protecting logistics operations, contracts, and financial responsibility

Freight brokers and freight forwarders operate in complex logistics environments where contractual obligations, cargo handling, and regulatory compliance create significant exposure. While brokers may not own trucks, they still face substantial liability tied to transportation arrangements.

A properly structured insurance program is critical to protecting operations, contracts, and long-term credibility.

Key Risks in Freight Brokerage & Forwarding Operations

Freight brokers and forwarders face exposure related to:

• Cargo loss, damage, or theft

• Contractual liability with shippers and carriers

• Contingent auto liability exposure

• Errors and omissions in logistics services

• Regulatory compliance and federal requirements

• Cyber and data security risks

Claims often arise from disputes over responsibility rather than physical control.

Core Coverages for Freight Brokers & Freight Forwarders

Freight broker and forwarder insurance programs typically include:

Contingent Auto Liability
Provides protection if a carrier’s insurance fails to respond following an accident.

General Liability
Covers third-party bodily injury or property damage claims not tied directly to auto operations.

Professional Liability (Errors & Omissions)
Protects against claims alleging mistakes, miscommunication, or failure to perform logistics services properly.

Cargo / Contingent Cargo Coverage
Provides protection for cargo loss or damage when carrier coverage is insufficient.

Surety Bond (BMC-84)
Required for licensed freight brokers to operate legally.

What’s Commonly Overlooked

Freight broker insurance programs are often weakened by:

• Inadequate contingent auto liability limits

• Failure to align coverage with shipper contracts

• Gaps between broker and carrier responsibility

• Missing E&O coverage for logistics services

• Overlooking cyber exposure tied to shipment data

These gaps often surface during high-severity losses or contract disputes.

Real-World Claim Examples

• A carrier causes a serious accident and lacks sufficient insurance

• Cargo is damaged and liability is disputed

• A shipper alleges failure to secure proper transportation

• A data breach exposes shipment or client information

Logistics claims can escalate quickly due to contractual complexity.

Why Proper Placement Matters

Freight broker and forwarder coverage varies significantly based on:

• Type of freight handled

• Contractual risk transfer provisions

• Volume of shipments and revenue

• Federal and state regulatory requirements

Improper placement can lead to uncovered claims or loss of contracts.

Our Approach

At Cory Washington & Co., we structure freight broker and forwarder insurance with a contract-first and compliance-driven mindset. We align coverage with shipper agreements, operational realities, and regulatory obligations — helping logistics firms operate with confidence.

Strong logistics depend on disciplined risk management.