Do brokers carry there own cargo insurance?

Some brokers do carry insurance for high dollar loads. I had a load with a value of $1MM once that the broker picked up the additional required coverage from what I normally carry, which is $100,000. Another broker had a load valued at $250,000 and they also had insurance for the difference. I doubt most brokers have this insurance. I can't see paying for $250,000-1,000,000 or more cargo insurance when most loads are under $100,000. Once you start bumping up the coverage on cargo your premiums increase dramatically.

 

As a brokerage, we cover every load with a blanket type coverage.

It's some of the information we send out to new clients for verification reasons. Not cheap, but cost of doing business.

 

Landstar as you know covers up to $100k and customers can purchase additional from Landstar for anything over $100k.

 

Yep, when I haul Land star loads they are covered to $1 million. They deduct $1.75 for the additional coverage on the settlement. It's optional and can be declined when you fill out their carrier packet.

 

Brokers can purchase what is known as Contingent Cargo or Contingent Liability insurance - essentially it covers them if for some reason the insurance on the truck cancels then there interests are still protected. It isn't that expensive however a majority of brokers go without it. Typically Fortune 100 manufacturers / shippers will require a broker to have this coverage before doing business with them. I know if I was the shipper I would require it. As it was mentioned earlier, it's just the cost of doing business.

 

As a new carrier, what companies do u know that don't require more than $250k cargo? Im new in the business and do not have $18k for insurance down payment

 

So as a new carrier, what's the minimum insurance requirements for ltl loads I need? Will be 26ft box truck.

 

It depends on the value of the product you are moving. I would ask your insurer you can also get contingency cargo to cover anything over your ins cargo limit On a per load basis. Make sure you ask the shipper what the cargo value is. If the load gets damaged and the cargo claim amount is over your limit you could be on the hook for the difference, I used to move molds that are valued from $500k - 1 million The shipper carried a blanket policy that covered anything over my $100k