Working with a multitude of individuals and companies to broker motor carriers and shipping services means dealing with transportation on a consistent basis. Freight broker insurance is an absolute must, and this is because you need to protect yourself and shippers and motor carriers you do business with. Knowing what coverage types are worth purchasing will help you spend your money wisely.
Contingent Cargo Protection
Since you are not going to know what a carrier’s insurance policy covers, you should not be willing to take any chances. Contingent cargo coverage is useful because it fills the gaps in a carrier’s insurance policy. Understanding that the specifics of this coverage can vary greatly means you should really analyze the details before purchasing a policy with contingent cargo and think everything is okay. For instance, since you cannot be legally liable for loss of cargo or claims of damage, this is not coverage you need.
Property + General Liability
Owning or leasing property means you should get property insurance, which is the simple part of this process. Ideally, you should package up general liability with this type of coverage, and this is because you want to make sure your operation and grounds are protected entirely.
Vicarious Auto Liability (Contingent Auto Liability)
It is a necessity to get this coverage as you want as much protection as possible in a lawsuit. Having an insurer by your side will reduce the frustration and complication of a lawsuit significantly, which is a very worthwhile benefit when you consider the small monthly fee it requires. Having vicarious auto liability means you will be covered in a lawsuit where you are found liable, but you should make sure you are getting the right protection with very specific details.
An Umbrella Policy
If you would like more protection, on top of vicarious auto liability, you can get an umbrella policy that can be acquired in increments of a million dollars.
Acquiring and maintaining protection for you, your operation, and the people you work with should be prioritized, and getting freight broker insurance is your solution. Paying attention to the most beneficial coverage types will ensure you acquire the right protection and spend your money wisely.