Freight Brokers Insurance
Developed by GSIS, the Broker Shield is a unique program that encompasses our consulting services within the insurance coverage. In this way, a domestic freight broker is provided with a total solution that includes necessary types of cargo liability coverage, errors & omissions insurance and warehouse legal liability insurance.
Very few insurers offer all of the types of insurance that a domestic freight broker needs. GSIS’ Broker Shield program was designed to meet all of these needs. Broker Shield is underwritten by a top-rated insurance carrier and offers affordable premiums.
Having the right freight brokers insurance in place is just the first of many ways to protect against the financial risk of being a freight broker. Those freight brokers who meet our underwriting standards and follow our risk management strategies can become members of our preferred pricing program and receive discounts up to 30%. With this pricing, brokers can secure the most competitive rates without having to skimp on coverage.
Broker Shield Insurance Program Specialty Lines Of Coverage
Freight Broker’s Auto Liability Coverage
This freight broker insurance coverage, which is sometimes called Contingent Auto Liability insurance, can assist with defense costs or payment of damages stemming from a freight broker being named as one of the defendants in a lawsuit. This can include a fatality or accidental injury suffered by a third-party motor carrier, which can pose a significant financial risk to any freight brokerage operation. Recent history shows some freight brokers who have been hit with judgments up to $24 million. Our auto liability freight brokers insurance policy can provide defense and associated costs and damages, or pay out a settlement up to the policy limits. Our primary freight broker auto liability policy covers up to $1 million per each occurrence, unlike other forms of insurance that typically have an “annual aggregate limit.”
At GSIS, we have a network of skilled and experienced lawyers all over the nation who specialize in defending freight brokers. If the need arises, the freight brokerage firm will have the most skilled group of lawyers available to defend against a lawsuit.
Contingent Cargo Legal with Freight Liability Extension
The freight liability extension attached to this policy covers additional financial liabilities beyond those associated with cargo. These could include pollution cleanup or associated fines, libel and slander, fraud committed by employees, infringement of another company’s intellectual property rights or fines issued for breaking the laws or regulations surrounding the freight movement.
This coverage offers a total response to the legal liability a domestic freight broker may be exposed to during regular business. The defense provision in this coverage is a critical factor. Broker Shield includes a provision called “duty to defend.” The policy deductible does not apply to this cost. All the attorney costs are paid. We also work in conjunction with the most knowledgeable attorneys across the nation; they are focused on representing domestic freight brokers.
Broad Form Contingent Cargo Insurance
This coverage is required when a freight broker assumes responsibility for lost cargo or damages that the motor carrier has not paid. When a freight broker gets into a contract, the document should be carefully reviewed to establish whether the freight broker is assuming liability under their D.O.T. Domestic Freight Broker authority. These contracts can contain indemnity clauses that can cause the freight broker to be responsible for a cargo claim should the trucker fail to pay that claim. Coverage under this insurance is available for FTL (Full Truck Load) shipments under most circumstances. However, some types of high-risk cargo, such as alcohol, tobacco, expensive electronics, cell phones, copper and other non-ferrous metals require a broader form of cargo coverage in conjunction with a strategic risk-management program designed to reduce theft.
Freight Broker’s Excess Auto Liability Coverage
This coverage is offered to complement the primary freight broker auto liability policy. GSIS offers additional coverage of up to $25,000,000. Given the current insurance market, this is likely to be the highest limit available for Domestic Freight Broker’s Auto Liability.
All Risk Domestic Shipper’s Interest Insurance
Moving freight with LTL (Less Truck Load) Motor Carriers necessitates a broader form of shippers interest coverage than is typically provided. We can set up a shippers interest cargo program in which insurance coverage is bought on a per-shipment basis for those who would like full replacement cargo coverage. We offer a web-based insurance platform that allows coverage to be bought instantly.
GSIS, a cargo insurance broker, can place cargo coverage for high-risk cargo, as long as proper security is in place during the movement of the freight. Freight Brokers who move higher risk cargo won’t typically qualify for a contingent cargo broad-form insurance policy, but need a primary cargo program in which adequate security must be present while moving freight.
Freight Insurance ASAP – Instant Excess Cargo coverage
When a Motor Truck Carrier policy limits does not cover the value of a shipment, you can purchase instant excess cargo liability insurance through our office. This insurance offers a freight broker greater flexibility in choosing a trucker to carry a shipment. The cost associated with instant excess cargo insurance can usually be passed on to the trucker or built into the shipper’s freight charges. An individual policy can be established for any account that has enough shipments requiring excess cargo coverage.
Errors & Omissions Insurance
This policy responds to the legal liability for financial loss (not limited to the value of the cargo) incurred by a freight broker’s client caused by the freight broker’s negligence, error or omission in the normal course of providing Domestic Freight Broker services.
A General Liability policy, with covered Territories of United States and Canada, is intended to respond to the financial risk that can be assumed as a result of the transportation services freight brokers offer. Third-party liability can be assumed for fatalities, bodily injury or liability to third-party property. This policy is designed to cover the cost of legal defense and any judgments levied.
Business Owners Policy Insurance (BOP)
Business Owner’s Policy (BOP) Insurance combines many of the essential property and casualty insurance coverage’s under one policy to protect your company from loss. GSIS will determine the risk your company faces and ensure that the proper coverage is in place to secure your future.
Broker Shield Risk Management Consulting Services
- Review and provide advice on amending or negotiating current shipper agreement wording to protect the freight broker’s business model. Court rulings over the past several years have made it clear that contracts and other representations will be considered in determining what services a party signs on to perform. Under federal law, this determines whether or not a party has liability.
- Help develop a model agreement for shippers, as needed, to use as a resource to evaluate and negotiate the wording of future shipping agreements.
- Review the agreements currently in place with motor carriers. These contracts, if drafted properly, can help to manage liability and have a meaningful impact on reducing financial exposures for both the freight broker and the client.
- Help to resolve claims, including subrogation, as an extension of your services.
- Partner with a technology provider that offers the freight broker access to critical data, including the status of a motor carrier’s common carrier or contract carrier authority, their present safety ratings and the status of their insurance coverage. •Aid with evaluation and qualification of motor carriers.
- Create a risk score card to use while evaluating carriers and provide a practical defense against a bad claim.
- Assist in assessing the AM Best financial rating of an insurer.
Broker Shield Claim Support Services
If you mostly move full truck-load shipments, the main liability for damage done to cargo or cargo theft rests with the motor carrier. Our claims division, Subrogateway USA, offers support to make collection of cargo claims against motor carriers easier. With over 70 years of combined experience in processing these cargo freight claims, we have knowledgeable staff to support the resolution of claims so they don’t escalate.
Broker Shield Risk Management Consulting Services
- Review of current Shipper Agreements, providing advice on amending or negotiating agreement wording to protect the Freight Brokers business model. In view of court rulings over the past several years, it is clear that contractual and other representations will be considered in determining what services a party holds themselves out to perform. Under federal law, how a party holds themselves out determines whether they have liability.
- Assistance in developing a model Shipper Agreement, as needed, to provide a compass to evaluate and negotiate wording in future agreements.
- Review current Broker Carrier agreements with motor carriers contracted to move freight. These contracts, if skillfully drafted, can assist in managing liability and have a significant impact on reducing both the freight broker and their client’s financial exposures.
- Assistance in resolution of claims, including subrogation, as an extension of your services.
- Partnership with a technology provider that gives the Freight Broker critical data on the status of a Motor Carrier’s common carrier or contract carrier authority, their current safety ratings and status of the insurance coverage.
- Assistance in motor carrier evaluation and qualification.
- Development of a Risk Score Card, for ongoing use in evaluating carriers and providing a viable defense in the event of a bad claim.
- Assistance in evaluating the AM Best financial rating of a Motor Carrier’s Insurer.
Broker Shield Claim Support Services
If you move principally FTL shipments (Full Truck Load), the principal liability for any cargo damage or theft rests with the Motor Carrier. Our claims division Subrogateway USA provides professional claim adjustment support to facilitate collection of cargo claims against motor carrier to support Freight Brokerage operations and their shipper client base. With more than 70 years of combined experience in processing cargo freight claim we have one of the most knowledgeable staff to support these claims being resolve so they don’t escalate to be an issue for your operation.