Freight Agent Insurance

Discussion in 'Freight Broker Forum' started by gmun, Jun 13, 2019.

  1. gmun

    gmun Bobtail Member

    May 5, 2019
    Looking for some feedback...

    I started a freight brokerage and am setting up my insurance.

    I'm getting quotes for the coverages below, based on recommendations from this forum....
    • Contingent Cargo
    • Contingent Auto
    • General Liability
    • Truck Brokers Professional Liability
    • Errors & Omissions
    My agents are Independent Contractors (1099).

    Talking to the insurance company, they're recommending since the agents are Independent Contractors, each agent needs to get their own coverages, at the very minimum General Liability.

    Is this the norm for independent agents?

    Is General Liability enough to cover them or would they need the coverages I'm shopping for?

    I'd appreciate any constructive feedback.
    wichris, 6wheeler and Midwest Trucker Thank this.
  2. Midwest Trucker

    Midwest Trucker Road Train Member

    Aug 31, 2018
    Huh, that’s interesting. I don’t see why they would have too, but it may not be a bad idea especially once they get some serious volume going. If they are on a 1099 then as far as I know your insurance wouldn't cover them. In case of an accident chances are they wouldn’t be named, but chances are if it was real bad they may. At most I’d think general liability would do the trick. The others are more relevant to the authority holder.

    I don’t have agents, I’ll be interested to see what others insights are.
  3. 6wheeler

    6wheeler Road Train Member

    Aug 30, 2009
    Charlottesville, VA
    I have very little brokerage experience but a ton of trucking and some large operations and insurance companies require contingent cargo for broker's...

    Starting out in time you will learn what is not necessarily an expense.
    Most claims that I have seen settled 90% by the truckers cargo coverage.
  4. wichris

    wichris Road Train Member

    Jan 17, 2011
    You're talking to an insurance company. You need everything that they sell. It's a must, can't live without it. LOL. Never seen a company that requires agents to have any type of insurance
  5. gmun

    gmun Bobtail Member

    May 5, 2019
    Thanks for the feedback. I just got my insurance finalized this week.

    Decided to go
  6. gmun

    gmun Bobtail Member

    May 5, 2019
    Decided to go with the General Liability and Contingent Cargo right now.

    I'll probably add the Brokers Professional Liability, which includes Contingent Auto and
    Errors & Omissions, as I grow but just couldn't justify adding the cost this early.

    I talked it over with my attorney and was given the advice for any Independent Agents to carry their own General Liability since they will have their own entity. Any cargo claims should be covered under the brokerage's cargo policy, if a claim even makes it that far.
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