Freight Brokers Liability Insurance

[magvab]

Does anyone know of an insurance market for freight brokers liability insurance coverage?

[Surety Guy]

We write surety bonds only, but hopefully for your sake liability isn't has hard to obtain for freight brokers as the ICC BMC-84 bond is!

[don jipping]

I am wondering the circumstances where a freight broker would need liability insurance?

[don jipping]

Does anyone know of an insurance market for freight brokers liability insurance coverage?

The freight broker has no control over the cargo or the power unit, he only arranges the movement of freight from pointA to pointB for a fee.
The carrier who is contracted by the broker is the one required for liability and cargo.

If someone can give me a situation where this liability ins would be required, please let me know

Don

[Unregistered]

You need to check the definition between Freight Forwarder and Broker - Broker never touches the freight - Forwarder - is defined as someone that brings the freight to the dock and breaks it down and consolidates it... That is where the insurance part comes in

[Admin]

You need to check the definition between Freight Forwarder and Broker - Broker never touches the freight - Forwarder - is defined as someone that brings the freight to the dock and breaks it down and consolidates it... That is where the insurance part comes in

Please specify who you are talking to by clicking the "Quote" icon in your next reply or by addressing them by name.

Just to clarify, bonds are not insurance, see: Surety Bonds & Insurance Compared

[ContingentCargo]

What is Contingent Cargo Insurance?

This policy provides legal defense coverage in the event you are named in a lawsuit. Contrary to popular belief, these policies are not designed to provide comprehensive cargo coverage for the freight. Your best insurance policy is calling the Motor Carrier's insurance agent and asking them for any exclusions on the commodity that you are about to move. So, why buy it? To have the legal defense and to GET THE CONTRACT. Good luck trying to convince your shippers that they "don't really know everything" about this part of the business. Their legal staff advises them what they need to increase their odds of better outcome in the event of a claim, so they follow suit.

I hope this answers some of your questions, and thanks to JW SURETY for the forum. They truly are an icon in the industry.

[don jipping]

What is Contingent Cargo Insurance?

This policy provides legal defense coverage in the event you are named in a lawsuit. Contrary to popular belief, these policies are not designed to provide comprehensive cargo coverage for the freight. Your best insurance policy is calling the Motor Carrier's insurance agent and asking them for any exclusions on the commodity that you are about to move. So, why buy it? To have the legal defense and to GET THE CONTRACT. Good luck trying to convince your shippers that they "don't really know everything" about this part of the business. Their legal staff advises them what they need to increase their odds of better outcome in the event of a claim, so they follow suit.

I hope this answers some of your questions, and thanks to JW SURETY for the forum. They truly are an icon in the industry.

So let me make sure I have this correct, contingent cargo will help the broker secure the contract with the shiiper, and in case he gets named in a suit regarding the loss or damage to the cargo, legal representation is provided?

What is the reason for a broker to carry contingent liability coverage?

don

[ContingentCargo]

Don,

Yes, this is the case. If ABC Shipping company has agreed to give you 15000 loads in a year's time as long as you have met their insurance requirements, and ONLY if you have met their insurance requirements, which is the smarter business decision? Argue with their legal team as to why you should NOT have this coverage and NOT get the deal, or buy it and make a lot of money? Case law has previously proven that indeed the motor carrier's are liable for the freight, HOWEVER, case law has not alway worked in favor of the shipper. This policy MIGHT help transfer the liability risk to someone they entrusted for the carriage of the freight. (Broker or Carrier). I know this is frank, but I know no other way. Hope it helps. ContingentCargo

So let me make sure I have this correct, contingent cargo will help the broker secure the contract with the shiiper, and in case he gets named in a suit regarding the loss or damage to the cargo, legal representation is provided?

What is the reason for a broker to carry contingent liability coverage?

don

[don jipping]

what about contingent liability?

don

P.S. I'd to find a shipper that would give me 15,000 loads a year! Heck, I'd get any kind of insueance he wanted! Almost 300 loads per week..!