Claims and law suits relating to lost or damaged cargo can arise because the trucker’s motor truck cargo policy doesn’t respond to the claim, we offer several cargo insurance programs to address each Freight Broker’s unique shipper/customer base, the sensitivities and risks involved therein.

* Contingent Cargo Legal Liability
* Contingent Cargo Broad Form Policy
* All Risk Domestic Shippers Interest Cargo Coverage
* Instant Excess Cargo Coverage

Contingent Cargo Legal Policy

This coverage responds to defense and damage payments associated with a freight broker being named a party to a law suit including a third party motor carrier’s fatality or injury accident. This represents the greatest financial risk to freight brokerage operations. Judgments have been as high as 24 million against a freight brokerage operation. Our freight broker auto liability policy with a duty to defend, will provide defense, pay defense costs and any attributable damages, or settlement up to policy limits. Our primary policy covers up to $1 million “per occurrence” versus other forms in the market which may have an “annual aggregate limit”.

Contingent Cargo Broad Form Policy

This coverage is required when a freight broker agrees to assume responsibility for cargo loss or damage that a motor carrier fails to pay. Whenever a freight broker signs a contract with a customer client it should be reviewed to determine if it is expanding the freight broker’s liability assumed under their D.O.T. domestic freight broker authority. Often these contracts contain indemnity clauses which require the freight broker to assume responsibility for a cargo claim should the trucker fail to pay for loss or damage associated with the freight. This coverage is available for FTL (Full Truck Load) shipments for most commodities shipped. However, certain high risk cargo exposures i.e. liquor, tobacco, high valued electronics, cell phones, copper and other non-ferrous metals require Broad Form cargo coverage with a strategic risk management program to reduce theft.

All Risk Domestic Shipper’s Interest Policy

The movement of freight with LTL motor carriers requires a broader form of cargo coverage than provided by motor carrier’s with legal tariffs where liability is limited to as little as $1 per lb. We can set up a shipper’s interest cargo program where coverage is purchased on a shipment by shipment basis for those shipper’s who want full replacement cargo coverage in place. We provide an on-line web based insurance platform that allows coverage to be instantly placed.

High Risk Cargo Program for Freight brokers who decide to move high risk cargo won’t typically qualify for a Contingent Cargo Broad form policy but rather will require a primary cargo program where adequate security in the movement of freight must be present. We can successfully place cargo coverage for these high risk cargoes, when proper security is present in the movement of this freight.

Instant Excess Cargo Coverage

When a truckers MTC policy limit is not high enough for the value of the shipment (most have only $100,000) you can purchase instant excess cargo insurance by going to This allows a freight broker to have more flexibility in assigning a trucker to move a shipment. The cost for this instant excess cargo insurance can often be passed along to the trucker or built into the freight charges to the shipper. If any given account has enough volume of shipments, that require excess cargo coverage, a policy can be established for that account.

A Freight Broker’s participation in Broker Shield can support their marketing activities. A Freight Broker dedicated to Risk Management, fully bonded and insured, is a more attractive logistics provider to Shippers. Such Freight Brokers offer shippers the prospect of better service and on-time delivery to the Shipper/Customers. A Freight Broker’s client can also be added as “Additional Insured” under the Freight Broker policies, extending legal defense to these parties. This can be a very substantial value added service that separates one domestic logistics operation from another, and is a better alternative to certain shipper agreement provisions that may impose commercially unfeasible assumption of responsibility and/or Insurance.

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