Freight brokers are either companies or individuals who find transportation services for goods that need to be transported. They most often serve as a liaison between manufacturing plants or distribution centers and trucking companies. It is their responsibility to find someone who can provide safe, timely and reliable delivery.
Although there are differing opinions on what kind of freight broker insurance coverage you should carry, there is a general consensus on three basic policies.
Property and General Liability
You can obtain property liability coverage separately from general liability, but it’s usually a better deal if you get them together. If your brokerage owns the property, it’s best to get them together.
If your brokerage has employees then you will most likely be required to have workers’ compensation insurance. Some states don’t require it, but it’s a good idea to talk to a freight broker insurance representative so you fully understand the potential implications of not possessing this coverage. American Team Managers is a company that can provide you with more information about this.
Vicarious Automobile Insurance
All drivers will have their own auto insurance, but if your company is found liable in any way (which is more common than you might imagine) you will want to have this coverage. Make sure that you understand exactly what is covered in your policy because they tend to vary.