What types of insurance does a transportation broker need?
Several types of liability insurance policies are available to protect brokers from claims arising from cargo loss or damage and third-party liability. Contingent Cargo Insurance provides coverage when the motor carriers insurance does not pay a claim and the motor carrier is unable to pay. Coverage is typically triggered only in situations where the motor carrier is negligent. Errors & Omissions Insurance protects the transportation broker if an error or oversight in the course of business causes a customer to suffer a financial loss. A transportation broker should ideally obtain a combined policy form with Errors & Omissions Insurance and Contingent Cargo coverage this is not the same as purchasing separate policies. Doing so can create both gaps as well as overlaps in coverage. Contingent Automobile Liability Insurance is also available to protect transportation brokers when they are held liable for death, bodily injury or third party property damage claims as a result of the motor
