Contingent Cargo Insurance

Cargo that is lost or damaged in transit when the motor carrier's own insurance does not pay the claim. Many shipper contracts hold the broker responsible if the carrier's coverage falls short—this is what steps in when that happens.

Contingent Auto Liability

Legal costs and damages if the brokerage is named in a lawsuit following an accident involving a motor carrier it hired. May respond when the motor carrier's own liability insurance does not fully cover the claim. Common limits are $1 million per occurrence.

Errors & Omissions (E&O)

Losses caused by a professional mistake: a wrong delivery address, incorrect cargo details, or a missed pickup. E&O covers the legal fees and settlements that follow an operational error, not physical cargo damage.

Freight Broker Bond (BMC-84)

The $75,000 surety bond required by the FMCSA for every licensed freight broker and freight forwarder in the U.S. Protects motor carriers and shippers, not the brokerage. Required to obtain and maintain operating authority.

General Liability

Covers incidents at the brokerage's physical location unrelated to transportation. Not required by the FMCSA, but typically required by office landlords and some shipper contracts.

Workers' Compensation Insurance

Required in most states for brokerages with employees. Covers medical expenses, lost wages, and rehabilitation costs for staff injured in the course of their work—dispatchers, operations teams, and office personnel included. State rules on thresholds and exemptions vary.

Cyber Liability (Optional)

Financial losses from a data breach, ransomware attack, or unauthorized access to the brokerage's systems. Increasingly included in broker programs as motor carrier identity fraud and freight-related cybercrime continue to grow.