Freight Brokers Insurance

Freight brokers are responsible for connecting shippers with carriers. Their job is to help cargo owners transport their physical goods in the most secure and efficient manner using their network of carriers.

With that comes a lot of responsibility, which can land your freight brokerage firm in a big mess of financial and legal trouble. That’s why getting freight broker insurance is highly recommended as in case of an accident - your business will be financially covered.

The cost of your freight broker insurance will heavily depend on a number of factors including the size of your business, the level of coverage you want to opt-in for, and the clients you work with.

The average freight broker in the United States pays around $3,000-$3,600 per year for insurance. Such a policy will provide your business with coverage in case a lawsuit arises due to third-party injuries and property damage.

If your freight brokerage has employees, you will also want to take out worker’s compensation insurance. This policy will cover your employees in case they get sick or injured at the workplace. It will provide financial cover for their lost wages, medical and hospital fees, rehabilitation costs, and others. You can expect to pay around $200 per month or $2,400 per year for this insurance.

Freight brokers typically have a number of insurance policies to choose from. Generally speaking, the level of cover your freight brokerage firm needs will depend on the size of your business, the level of cover you want, the risks your company is exposed to, and various other factors like that.

Please take a look below where you’ll be able to find out the most recommended insurance policies for freight brokers in the United States.

Miscommunications, errors in data coding, shipment delays, or even damaged products are some of the risks that freight brokers are exposed to on a daily basis, which can get the company sued both by the carrier and the shipper.

That’s why getting contingent cargo insurance for freight brokers is a necessary step for businesses that want to protect their financial standing in case they get sued.
In other cases, freight brokers in the United States are simply required to take out a certain level of cover before they can legally trade. This is done so that everyone involved in the business is protected if an accident were to happen.

Whatever the case may be - freight brokers must always get insured as without insurance - they will be responsible for paying for the damages, lawsuits, legal costs, medical fees, and other charges out of pocket if they are found to be at fault during a lawsuit.