Freight broker insurance coverage is complicated in that it appears to involve several different forms of insurance at once. Freight brokers are taking on a great deal of risk, and they truly need a lot of coverage in order to prevent costly disasters.
The size of Freight brokers’ operations can vary greatly. Some of them are large companies that span several continents. Others only have a few employees. Regardless of the size of the operation, freight brokers are in need of the same multifaceted insurance coverage.
Workers’ compensation insurance absolutely has to be part of the picture. The affiliated carrier also needs to have its own workers’ compensation insurance. Freight brokers can be strongly affected by the actions of their carriers. This is something that should always be remembered.
Freight brokers also need to have property and general liability insurance, since they will typically lease or own property. Their operations and premises need to be protected by general liability insurance as well.
Many freight brokers are familiar with the need for both contingent cargo insurance and vicarious auto liability insurance. Some contingent cargo insurance policies will not cover errors and omissions, however, and this can be a problem in a business like this. Some freight brokers might be better off purchasing errors and omissions insurance, depending upon the nature of the contingent cargo insurance policy that they have.
Ramey King Insurance has been providing insurance coverage of all types since 1881. Freight Brokers insurance is one of the ways we help to protect of customers everyday. If you are in need of coverage, or if you are wondering if you have enough coverage, please contact us today!