Freight Insurance: The Types to Keep in Mind
A freight broker facilitates the movement of freight. They pair shippers with carriers, schedule and traffic each load. Additionally, they keep in communication with the carrier throughout shipping. Motor truck cargo carriers and shipping services use freight brokers to find quality carriers.
Now, keep in mind that freight brokers do not have to carry motor truck insurance coverage. Still, there are risks involved and brokers may be held liable for a shipment. Here are some freight broker insurance options.
Vicarious Auto Liability
Just as a broker is liable for lost or damaged cargo, they are also liable for wrongful death or personal injuries through vicarious liability. This is because the broker has the ability to enforce rules in a carrier manual.
This coverage fills gaps that the carrier’s policy has. This protects the broker from claims of lost or damaged cargo.
Errors and Omissions
Some risks do not involve vehicles or cargo. For instance, if a broker gives incorrect shipping information due to mistake, the broker might suffer negligence charges. E&O coverage covers the costs of this type of claim.
Freight brokers are responsible for pairing shippers with carriers. If something goes wrong, they can be held liable. This is why freight broker insurance is so crucial. Without it, brokers can wind up on the wrong side of a lawsuit.