Freight Broker Insurance in Mystic, CT
Freight brokers are pivotal in the transportation industry, connecting shippers with carriers to ensure efficient delivery. Operating in this high-stakes environment requires a thorough understanding of freight broker insurance to mitigate risks and maintain compliance. 
Freight Broker Surety Bond
A freight broker surety bond is a federal requirement for obtaining or renewing a freight broker license. This bond can compensate carriers and shippers if brokers fail to fulfill their financial obligations or commit fraud.
General Liability and Property Insurance
Though not federally mandated, general liability insurance is essential for freight brokers. This coverage applies to incidents at the broker’s place of business, such as property damage or injuries. Property insurance is equally important, especially if you own your business’s building. This insurance protects against risks like theft, fire and other unexpected damages.
Contingent Cargo and All-Risk Insurance
Contingent cargo insurance is designed to cover gaps in motor carrier policies and can provide protection for cargo loss or damage when the carrier’s insurance is insufficient or denies a claim. This coverage helps ensure brokers are not left financially responsible for compensating shippers.
However, contingent cargo insurance has its limitations. All-risk contingent cargo insurance offers broader protection, covering many potential issues.
Vicarious Auto Liability Coverage
Vicarious auto liability coverage is crucial for brokers who may be liable for a carrier’s actions if they exert a controlling interest in the carrier’s operations. For example, if a broker dictates the carrier’s route and a crash occurs, the broker could be held responsible for any resulting injuries or property damage. This coverage may apply in cases where the carrier’s general liability policy is insufficient to cover significant claims, such as personal injury or wrongful death.
Workers’ Compensation and Errors & Omissions Insurance
Workers’ compensation insurance is a legal requirement for businesses with employees in many states. It can cover medical expenses, rehabilitation costs, lost wages and disability benefits for employees injured on the job.
Errors & omissions (E&O) insurance protects against legal liabilities arising from professional mistakes, such as providing incorrect delivery information that leads to delays and penalties. The cost of E&O insurance varies based on factors like the number of employees and the business’s risk profile.
Contact Us
Contact Specialty Coverage Insurance Agency to learn more about freight broker insurance options near you.