Contingent Cargo Insurance and The Freight Broker

The freight broker arranges the shipment of the cargo by naming the trucker on the bill of lading. The responsibility for providing auto liability coverage and cargo coverage rests upon the trucker. In compliance with regulations, the trucker is required to have certain minimum amounts of insurance in-force. The broker typically makes certain that the auto liability is in-force and at the minimum required limit by obtaining a certificate of insurance. Similarly, the broker verifies that the limit of trucker's cargo coverage is adequate to cover the value of the load being transported.

Contingent Auto Liability coverage provides indemnity and defense to a truck broker for third-party liability claims. Contingent Cargo coverage provides indemnity and defense to a truck broker for third-party cargo claims. An example of where coverage applies is a case where the broker relies upon a certificate of insurance for a trucker to be valid and it turns out to be bogus. A claim ensues and the truck broker is brought into the fracas. The contingent policy provides for indemnity and defense.

Most insurers do not want to write this coverage and product scarcity leaves the truck broker exposed,Shouldn’t you have the peace of mind that your dispatchers are using carriers with up to date insurance information?

At A1 Freight Broker Training,We cover The importane of Contingent Cargo Isurance