Freight Broker Coverage Needs
Brokers have a special coverage needs because they are acting as a freight agent for the shipper. While filings are not needed, brokers are required to register with the FMCSA and supply them with evidence of a $10,000 surety bond.
Classic Truck Insurance have several coverage form options to meet the needs of brokers. They are:
Auto Liability or Cargo Coverage for Brokerage Concerns-Broadened Contingent Coverage. The hauling carrier is required to furnish you with a copy of their policy, an additional insured endorsement, or a certificate of insurance; and will respond if:
- At the time of the covered loss, coverage required by your brokerage agreement is not collectible.
- The limit of insurance payable by this form is reduced by all sums paid by or on behalf of the hauling carrier.
Trucking-Named Broker as Insured (including cargo). We attach this "additional insured endorsement" to the hauling carrier's policy. As a carrier you need to have a written brokerage agreement with a hold harmless agreement in place with the broker. Our endorsement will then provide primary liability and cargo coverage for you and the broker, including contractual liability and a provision for a notice of policy cancellation or reduced limits.
Ask Us About:
- Insuring an owned auto titled in the brokerage business name.
- Hired and non owned auto liability. Some examples of exposures would be an auto rental on a business trip or an employee using their car on brokerage busies.
- Commercial general liability coverage for the office exposure, off premises sales calls, and independent contractors operating on your behalf.
- Workers Compensation covering officers, office staff, and other employees of the brokerage entity.