SPECIALTY COVERAGES
Freight Forwarders
Financial Protection for Companies That Oversee Shipments
As a freight forwarder in the trucking industry, you have unique insurance needs because you act as common carriers for shippers. Your role also makes your business subject to the Carmack Amendment.
The Carmack Amendment applies to cargo shipped across state lines. It regulates the relationship between shipping companies and the owners of goods under shipment. While the act limits shipping carriers to liability for property damage only, it makes carriers liable for damage regardless of how it was caused. Because of this, your freight forwarding business faces risks that many other trucking companies simply don’t.
Why You Need Freight Forwarders Insurance
Many freight forwarders issue a sub-bill of lading to their motor carrier to transfer some of their liability. Unfortunately, your business can still face financial risk. For example:
- If you select a motor carrier with an unsatisfactory Federal Motor Carrier Safety Administration (FMCSA) rating, you could be named in a lawsuit if there is an accident.
- If your motor carrier hires questionable drivers, you could face litigation related to the drivers’ actions.
- Your motor carrier's Cargo policy excludes certain types of commodities or off-temperature losses. Even though you have a certificate of coverage on file, are you confident the motor carrier can pay a settlement if insurance does not cover a loss?
Depending on how your freight forwarding business is set up, you can still be held liable for the negligent acts of a motor carrier or its truck drivers.
That’s why it is important to have Freight Forwarders insurance. It protects you and your clients against legal fees, court expenses, and judgments that result from being named in a lawsuit against a motor carrier.
Get Freight Forwarders Insurance from a company that understands trucking.
Freight Forwarder Policy Endorsements
No two freight forwarders run their business the same way. That’s why your Great West agent may recommend a policy amendment, often called an endorsement, to match the unique risks your freight business faces. By adding an endorsement, your Great West agent can modify your Freight Forwarders coverage based on your trucking business structure, shipping partnership agreements, and operational practices.
Freight Forwarders Insurance Contingent Coverage Endorsement
If you are a freight forwarder that works with motor carriers, your Great West agent will recommend adding a Contingent Liability coverage endorsement and a Contingent Cargo coverage endorsement to your Freight Forwarders insurance policy.
Great West’s Contingent coverage endorsement protects your business when your motor carrier has an accident, and the insurance required in your forwarder agreement is not collectible. It is called contingent coverage because it pays out only if the insurance from the motor carrier does not, and the payment is reduced by any settlement made by, or on behalf of, the hauling carrier.
For this endorsement, you must have a forwarder agreement. Your motor carrier is required to furnish you with a copy of their Auto Liability and Cargo policies, an Additional Insured endorsement, or a certificate of insurance.
Motor Carrier Liability & Cargo Policy Freight Forwarder as Additional Insured
As a motor carrier that works with freight forwarders, most of your forwarding contracts will require adding the freight forwarder as an Additional Insured to your Auto liability and Cargo insurance policies. This Additional Insured endorsement is attached to your Great West policy to meet that requirement.
For this endorsement, you must have a written forwarder agreement with the freight forwarder.
The Additional Insured endorsement will provide primary Auto Liability and Cargo coverage to the freight forwarder, including contractual liability and a provision for notice of policy cancellation or reduced limits.
Motor Carrier Liability Second Level Endorsement
A Second-Level Liability Endorsement is attached to a motor carrier’s Auto Liability insurance policy to provide the freight forwarder coverage in excess of what is required by the motor carrier in its contractor agreement.
Here's an example:
If the agreement between the freight forwarder and a motor carrier requires that the motor carrier maintain a $1 million liability, but the freight forwarder needs $2 million of coverage for its business, this endorsement would provide that additional coverage.
It is important to note that this endorsement provides coverage only for the freight forwarder. The motor carrier is not covered.
Why You Should Choose Great West’s Freight Forwarders Insurance
Great West has focused on only commercial truck insurance for more than 70 years. Our deep industry experience and understanding of trucking insurance enable us to help you protect your freight forwarding business by creating a specialized policy that addresses the unique risks.
When you have an accident, we know that fast, professional claims service is crucial to your livelihood and the clients that depend on you. That’s why Great West provides proactive Claims Specialists to help you file a claim 24x7x365 and to get things moving quickly.
Another Advantage of Choosing Great West
A freight forwarder is required to supply the FMCSA with evidence of liability and cargo filings. When you have a Great West policy, we make those filings for you and will issue an MCS-90 endorsement, if appropriate. It’s another convenient advantage of choosing Great West Freight Forwarders insurance.
Be sure to ask your Great West agent about:
- Insuring an owned auto titled in your 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 forwarder business
Get Great West’s Freight Forwarders Insurance.
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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.