Freight brokers are responsible for connecting shippers with carriers and helping 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 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.
How Much Does Freight Brokers Insurance Cost?
The cost of your freight broker insurance will heavily depend on several 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 you’d like a firm idea of costs, please apply for a free quote.
Which Types of Insurance Should Freight Brokers Have?
Coverage that protects you for cargo loss, theft, and damage of the goods in transit. This coverage covers the freight brokers' legal liability for physical loss, as well as defense against a claim that resulted from a load you tendering.
Professional Liability (E&O)
A professional Liability policy will protect you against any errors or omissions you make while running your business when that error results in a monetary loss to your clients. This insurance will cover court costs, attorney fees and a settlement you may be found legally liable to pay.
Third Party Liability/Contingent Auto
As a broker, you may not own commercial vehicles. However, one of the most common claims filed against freight brokers today is when their motor carriers fail to secure or fail to carry commercial auto insurance adequate to cover a loss. In the event of an accident, resulting in another person's bodily injury or property damage, a freight broker is likely to be involved in that claim and brought into suit if the damages are bad enough.
General liability insurance - also known as business liability insurance is designed to protect you and your company from any “general” claims that are in relation to bodily injuries and property damage.
Every business in the United States can benefit from a general liability insurance policy in case a general claim is made against them.
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 coverage 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.
How to Apply For Freight Broker Insurance
Simply fill out our online application and one of our experienced insurance professionals will be in touch with you within one business day.