Contingent coverage
Understand the trigger. Contingent cargo or auto is not an automatic replacement for every carrier-policy gap.
Freight Brokers and 3PLs
Freight broker & 3PL insurance.
Arranging transportation creates different exposures from hauling the load. Your contracts and actual services drive the program.
Talk to our team →
What we look at.
Professional services
Broker errors, carrier selection and shipper contracts deserve a separate liability review.
More than brokerage
Disclose warehousing, handling or owned vehicles. A bond does not replace your liability insurance.
Contingent Cargo
Contingent cargo responds only when its defined trigger and conditions are satisfied. It is not a guarantee that any gap in the motor carrier's insurance will be filled.
Contingent Auto Liability
Review liability alleged against the broker after a motor carrier accident, including negligent-selection exposures and form restrictions.
Freight Broker E&O
Professional liability for defined transportation-arranging services, subject to the policy's triggers and exclusions.
The FMCSA Broker Bond
Property broker financial security currently requires a $75,000 BMC-84 bond or BMC-85 trust, subject to FMCSA rules. This is distinct from liability insurance.
Warehouse Legal Liability
Legal liability for customers' goods in storage. The warehouse agreement, causes of loss and liability standard affect the analysis.
General Liability
Review premises and other non-professional liability exposures alongside shipper requirements.
Cyber and Crime
Separate payment fraud from freight theft. A cyber or crime policy does not automatically insure a load collected by a fictitious carrier.
Hired and Non-Owned Auto
Consider business liability from rented or employee-owned vehicles used for business.
What to bring to a review
Share shipper contracts, carrier-selection controls, freight values, revenue and any warehousing activities.
Questions & answers
Good questions to ask.
Will contingent cargo fill any gap in a motor carrier's policy?
No. Its own trigger, exclusions and conditions must be satisfied. A primary cargo or broker's legal liability requirement in a shipper contract may need a different form.
Is the broker bond insurance for our own liability?
No. The required BMC-84 surety bond or BMC-85 trust serves a financial-security purpose. Surety payments can create reimbursement obligations. Review insurance for the brokerage's exposures separately.
How do we request a shipper certificate?
Send the service team the holder's legal name, address and insurance requirements. We check the request against the policy. Endorsements or insurer approval can require additional time; a certificate cannot add coverage.
From our journal
Related articles.
Let's talk about your insurance.
Tell us about your business and what you need.