Freight Brokers Insurance

Financial Protection for Carriers Acting as a Freight Agent

Freight Brokers insurance provides your trucking business financial protection when you are acting as a freight agent for shippers.

As a freight broker, you are a vital link between the shipper and the trucking company. You facilitate the delivery of goods between the shipper and the motor carrier, managing all details from initial pickup to drop-off to ensure your client’s cargo travels safely on each leg of its journey.

Not only do you streamline the process and remove obstacles to good service, but you also are your client’s advocate when things go wrong. If cargo is damaged during shipment, you work with your shipping partners to resolve the issue and, when necessary, arrange payment.

Unfortunately, your core role in the shipping process can make your trucking business vulnerable to lawsuits when things don’t go smoothly.

Why You Need Freight Brokers Insurance

Typically, your brokerage assumes no responsibility for the property being transported. However, depending on how the brokerage is set up, a freight broker can be held liable for the negligent acts of a motor carrier or its truck drivers. If you provide driver equipment or are instrumental in controlling the delivery of goods, you can face additional risks.

That’s why it is important to have Freight Brokers coverage. It protects you and your clients against incurring legal fees, court expenses, and judgments resulting from being named in a lawsuit against a motor carrier.

Freight Brokers Insurance Broadened Contingent Coverage Endorsement

If you’re a freight broker that works with motor carriers, a Broadened Contingent coverage endorsement is a recommended addition to your insurance policy. Broadened Contingent coverage protects your brokerage if your carrier has an accident and its Auto Liability and Cargo insurance are unable to pay for the damages, or if the settlement is not collectible.

As part of the Broadened Contingent coverage endorsement, you’re required to have a written agreement with your motor carrier, and they must furnish you with copies of their Auto Liability and Cargo policies, an Additional Insured endorsement, or a certificate of insurance.

The limit of insurance payable through this endorsement is reduced by any payment made by, or on behalf of, the motor carrier.

Freight Broker as Additional Insured

A freight broker as an Additional Insured to your Auto Liability and Cargo insurance policies. Great West’s Additional Insured endorsement helps you meet that requirement.

As a motor carrier, you need to have a written brokerage's agreement in place that includes a “hold harmless agreement” with the freight broker.

This endorsement will then provide Primary Liability and Cargo coverage for you and the freight broker, including Contractual Liability and a provision for notice of policy cancellation or reduced limits.

Second-level Liability Endorsement

The Broadened Contingent Liability coverage caps coverage at the lesser of the amount shown in the policy and the amount required under the broker's agreement with the motor carrier. Sometimes, a freight broker will require additional liability protection beyond what is specified in its contract with the hauling motor carrier.

Here is an example:

For instance, the broker may carry $2 million of coverage in its own motor carrier operation but only requires $1 million in its broker agreement with the hauling motor carrier, and wants the same limits for its broker and carrier operations. To achieve this, your agent will recommend adding a Second-Level Liability endorsement to your Broadened Contingent Liability policy. This will provide freight broker coverage beyond what is required under the contractual agreement with the hauling motor carrier.

It is important to note that this endorsement provides coverage only for freight brokers. The motor carrier is not insured through this policy.

Fast, Efficient Claims Service

When you have an accident, we know that fast, efficient claims service is crucial to your livelihood and the clients that depend on you. That’s why Great West provides 24x7x365 proactive Claims Specialists to help you file a claim and get things moving quickly.

Learn More About Claims Services

smiling claims specialist helps a customer file a claim

Knowledge to Protect Your Business

Be sure to ask your Great West agent about:

Insuring an owned auto titled in your brokerage business’s name
A Hired and Non-Owned Auto Liability policy that covers car rental for business trips or an employee using their personal car for business
Commercial General Liability coverage for your office, off-premises sales calls, and independent contractors operating on your behalf
Workers Compensation coverage for officers, office staff, and other employees of your freight brokerage

Truck driver drives his truck through a parking lot

Insurance Contracts are Underwritten, Administered, and Issued by: Great West Casualty Company, Old Republic Life Insurance Company, and Old Republic Union Insurance Company.

One or more Old Republic companies may provide the products and/or services described. Information presented is for illustrative purposes only and does not constitute a contract or advice, including employment advice or advice to motor carriers. Please refer to the relevant insurance policy for actual terms. Products and services may not be available in all states and may be subject to change without notice. © 2026 Old Republic International Corporation. Old Republic® and the Old Republic Circle of Stars monogram are registered trademarks. All Rights Reserved.

SPECIALTY COVERAGES
Freight Brokers Insurance

Financial Protection for Carriers Acting as a Freight Agent

Why You Need Freight Brokers Insurance

Get Freight Brokers Insurance from a company that understands trucking.

Extended Protection Policy Endorsements