Do agents working at a brokerage typically have financial liability?

Discussion in 'Freight Broker Forum' started by stnkbg, Dec 14, 2020.

  1. stnkbg

    stnkbg Bobtail Member

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    I'm a complete newbie and a broker is willing to take me on and train me to eventually operate as an agent. Given how most brokers only accept agents with an established book of business and previous industry experience, it is an opportunity to learn the business at the very least if I end up being bad at sales.

    But I don't want to become financially liable for anything while learning the business.

    If there are any experienced agents out there, should agents typically be responsible for uncollected freight charges and footing the bill if the shipper they found ends up not paying their bill for some reason?

    I'm seeing a lot of sample contracts that brokers are using to establish their agent/broker terms. Here's an example from google:

    http://webcache.googleusercontent.c...cd=3&hl=en&ct=clnk&gl=us&client=firefox-b-1-e

    Seems like the agent is shouldering a lot of the risk the broker should be taking on instead since they are the ones who are insured for those sorts of things, no?

    What level of risk should new agents expect while operating with a broker?

    Thanks in advance for advice.
     
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  3. stnkbg

    stnkbg Bobtail Member

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    Does anyone have experience working with Relay LLC?
     
  4. MrReactor

    MrReactor Light Load Member

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    I'd still do it, get the experience.
     
  5. baha

    baha Road Train Member

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    You will be doing a lot of phone work and asking some info. from drivers you will soon be able to tell if a driver is 20 mi. away from p/u or 200mi. away?
     
    stnkbg Thanks this.
  6. DMTLLC

    DMTLLC Light Load Member

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    I have had to go after a Broker only twice for Payment, both times I also named the Agent that issued the load confirmation and "CC" that agent on everything, including naming ALL Parties in one that ended up going to Litigation in the State of Oregon, where I was awarded 3X the original claim, when all the feet are held to the fire the plaintiff usually prevails!

    Yes you are responsible financially.
     
    SGT. Super Slab and stnkbg Thank this.
  7. Midwest Trucker

    Midwest Trucker Road Train Member

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    I think they sell insurance for agents. I doubt it’s very much at all. So, if it’s something you are worried about then probably money well spent.
     
    stnkbg Thanks this.
  8. stnkbg

    stnkbg Bobtail Member

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    Thanks for sharing this. Good to know.
     
  9. stnkbg

    stnkbg Bobtail Member

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    I will look into this. It is something I never considered until I started reading about some of the legal cases involving brokers. I would hate to make a newbie mistake and then get sued into oblivion.
     
  10. DMTLLC

    DMTLLC Light Load Member

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    I know that if you are "1099" rather than a "Employee" you are on your own along with the Broker.
     
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