Why the Right Insurance Is a Necessity for Freight Brokers

Freight Brokers Insurance / Sunday, July 28th, 2019

As a freight broker, there are many situations that you must prepare for when handling another company’s freight. It’s crucial that you have the proper protection while you take care of the different tasks associated with your job, whether you’re handling shipments or tracking each load of cargo. This guide explains the importance of having the right coverage, from freight broker errors and omissions insurance to contingent cargo.

Protects Against Claims

Having insurance allows you to be protected when a shipper makes a claim against you. Some of these claims may include:

Lost or damaged cargo
Personal injuries
Wrongful death
Negligent hiring

If someone makes a claim of lost or damaged cargo against you, contingent cargo insurance can cover it. Vicarious auto liability insurance usually covers claims of death, injuries, and negligent hiring.

Provides Coverage for Errors

Insurance for freight brokers can also protect any errors that you might make. In some cases, you may be liable for financial damages after accidentally providing incorrect information to the carrier. You can then be protected from the costs of defending the claim against you if you have freight broker errors and omissions insurance.
It’s vital to have proper coverage as a freight broker. No matter what type of situation you’re dealing with, a reliable insurance policy can cover the costs and help you do your job well.