TransInsurers Specializes in Freight Broker Insurance
Insuring your Freight Brokerage is simple! Freight Broker Insurance may vary between Insurance Carriers, so you will want to make sure that you work with a professional insurance agent that is experienced in Freight Broker Insurance. TransInsurers represents many of the leading freight broker insurance carriers, so we are able to shop for the right Freight Brokerage Insurance coverage that will meet your needs.
Freight Broker Insurance – Requirements
Freight Brokers are to maintain a surety bond in the amount of $75,000 annually. FMCSA requires this to keep your authority active and to be able to do business as a freight broker. The insurance carrier must provide your bond information to the FMCSA to show proof of coverage and to place a filing (BMC-84) under your MC number so that your authority will go active.
If need cargo coverage for one trip, please visit FreightGuard Insurance.
What is the cost of Freight Broker Insurance?
Freight Broker Insurance Premiums can vary based on a few factors that the Department of Insurance considers. These include:
- Experience of the business
- Experience of the owner of the business (if a new company)
- The Annual Gross Receipts of the brokerage
- Estimated receipts of the upcoming year (if a new company)
- The commodities that will be brokered
- The hiring practices of the carriers
Due to these factors and mainly the annual gross receipts of the brokerage can have the annual premium in a huge range. Most of these policies do run on a minimum premium of anywhere from $1,300 – $5,000. The more experience in the brokerage industry and the best practices with hiring carriers are going to allow you to be quoted in the more preferred companies.
Freight Broker Insurance Coverage
Freight Broker Bond: A surety bond in the amount of $75,000 is required by the FMCSA under 49 CFR Part 387.307 for all licensed brokers of property. A Form BMC-84 is used to make the filing with the FMCSA and remains in effect until cancelled by the bonding company. The surety bond is used to ensure the financial responsibility of the broker by providing for payments to shippers or motor carriers if the broker fails to carry out its contracts, agreements, or arrangements for the supplying of transportation by authorized motor carriers.
Freight Broker General Liability Insurance: A policy designed to respond to the liability a freight broker could assume other then liability to cargo or liability as result of a vehicle being driven. For example if a third party trucker or warehouse personal were injured as result of cargo being unloaded from a truck and the freight broker is dragged into a law suit. Defense coverage will normally be provided in most policy forms whereby attorney will be assigned by the insurance company to defend the freight broker/forwarder and incur those costs and if found liable respond to the agreed settlement amount up to policy limits.
Contingent Auto Liability Insurance: This policy is designed to protect against the liability assumed by transportation brokers and freight forwarders when the truckers that they have under contract are involved in accidents where bodily injury, death or property damage take place. Defense coverage will normally be provided in most policy forms and will provide for an attorney to be assigned by the insurance company to defend the transportation broker or freight forwarder. The policy will cover the cost of the attorney and if found liable, will pay the agreed settlement amount up to policy limits.
Contingent Cargo Insurance: This type of policy is designed to protect a transportation broker or freight forwarder against the liability assumed when making arrangements to move cargo for others. Contingent Cargo Legal Liability provides coverage when a trucker’s primary motor truck cargo policy fails to assume the responsibility for cargo loss or damage. These policies respond to the legal liability that transportation brokers and freight forwarders assume under law.
Truck Broker Liability: This policy is designed for truck brokers, along with trucking operations, that have brokerage authority. It provides primary coverage – not the less adequate contingent auto liability that insureds presently have. The Truck Broker Liability policy is a hybrid primary liability policy that addresses the truck broker’s general liability arising out the ownership and use of a truck by the motor carrier of a brokered cargo move, in conformity with a written truck brokerage agreement.
TransInsurers Has Experienced Agents Ready To Assist
Freight brokers are required to have a financial responsibility filing that shows proof of insurance for their surety bond (BMC-84). Our agents are knowledgeable to assist owners with federal filings and will be happy to assist you with getting the filing process completed.
Why Choose TransInsurers for Freight Broker Insurance?
- Our trucking transportation insurance specialists are continually looking for more markets and competitive pricing to better serve you.
- We want to provide you with the best Freight Broker Insurance service in the industry and be the only insurance agent you will ever need!
- TransInsurers provides a wide range of property and casualty trucking transportation insurance coverage through some of the strongest companies in the country, such as:
Occidental Fire & Casualty
Pennsylvania Manufacturing Association
Trucking Transportation Freight Broker Insurance News, Information & Educational Resources
This Trucking Transportation Insurance blog and our site are dedicated to providing useful Transportation Insurance information and resources. Below is a summary of our resources we plan to add:
- Blog Post are segmented by Categories which are links found on the right sidebar.
- Relevant Insurance and Financial Services Authority Sites are also links on the right sidebar.
- Relevant Feeds of Summary Articles from Authority Sites are on the right sidebar.
- Authority Links are often found on individual Posts as referenced documentation.
- Quotes–get a free, no obligation risk assessment and quote—Call or eMail a request.
Thank you again for visiting our Transportation Insurance Blog. Please let me know if you have any suggestions with a comment. Enjoy!
Visit our TransInsurers Trucking Transportation Insurance blog for more information.
TransInsurers was started in 2002 to meet the trucking transportation insurance needs of the small to mid-sized trucking company. We realized how difficult it was for people, who are on the go, to find an insurance agent who is responsive to your needs and that provides a full line of coverage applicable to the busy trucking professional. TransInsurers represents many of the leading freight broker insurance carriers, so we are able to shop for the right Freight Broker Insurance coverage that will meet your needs.
We offer superior trucking transportation insurance coverage at affordable rates for all types of local and long distance commercial truck insurance, including tractor and semi trailer; short truck; dump truck; specialized haulers; and hotshot truckers. We represent a number of top rated trucking and transportation broker insurance carriers, which gives us the ability to find the right insurance, at the right price, to fit almost every trucking need. TransInsurers will also work with you on financing options, if required. Our coverage is provided through well-known companies like AIG, Canal, CNA, Occidental, Zurich, Carolina Casualty, Northland, Hartford, Progressive, RLI Transportation and Sagamore.
Contact one of our licensed insurance agents to schedule a free freight brokerage insurance evaluation or call now (804) 739-9121.
Freight Broker Insurance Specialist