When the carrier's policy isn't enough.
Coverage for freight brokers, logistics companies and freight forwarders arranging truck, ocean and air shipments.
By Sam Alishahi · CA Insurance License #4348151 · Reviewed October 2026 · How this page is researched
Brokers get sued over carriers' losses
When a carrier you hired has an accident or loses a load, injured parties and shippers often name the broker too. Contingent auto liability and contingent cargo respond when the carrier's own insurance fails or doesn't apply, and shippers often require them in their contracts.
Brokers also need general liability and errors and omissions, and FMCSA requires property brokers to file a financial security bond or trust. I place broker and forwarder coverage with transportation specialty markets.
- Contingent auto liabilityWhen a hired carrier's accident leads to a claim against you.
- Contingent cargoWhen the carrier's cargo coverage doesn't pay.
- E&O and general liabilityYour own errors and business operations.
- Broker bondThe financial security FMCSA requires.
What underwriters will ask
Having these ready means I can go to market on the first call. The quote form asks for the same things, and anything you don’t know yet can wait.
- Authority: MC number and years operating.
- Revenue: annual gross revenue and loads per year.
- Freight: commodities and highest load values.
- Carrier vetting: how you select and monitor carriers.
- Contracts: shipper insurance requirements.
- History: current policies and claims.
Freight broker insurance, answered
Do freight brokers need insurance if carriers are insured?
Yes. Brokers are regularly named in lawsuits after carrier accidents, and carrier policies don't protect the broker.
What is contingent cargo?
Coverage that pays for a cargo loss when the carrier's own cargo insurance doesn't respond, subject to the policy terms.
Is the broker bond insurance?
No. The bond or trust is financial security FMCSA requires for broker authority; it protects shippers and carriers, not you.
What do underwriters rate on?
Revenue, commodities, load values, carrier vetting and claims history.
Do you offer freight broker insurance outside California?
Yes. Clients across the country send the same quote form. California policies are placed directly; outside California the request is handled together with a partner agency in your state, and the shopping across carriers works the same way. Rules, minimums and markets differ by state — see truck insurance by state or insurance requirements by state.
Tell me about your brokerage. I'll shop it.
Your MC number, revenue and freight types are enough to start.
Alishahi Insurance · Saman Alishahi, independent insurance broker, California License #4348151. General information, not a quote or a promise of coverage; coverage depends on underwriting and the terms, conditions and exclusions of the policy actually issued. Some policies may be placed with nonadmitted (surplus lines) insurers, which are not members of the California Insurance Guarantee Association (CIGA).
Tell me how to reach you. I’ll take it from there.
Takes about 30 seconds. I review every request personally and call you back, usually the same day.
(424) 552-4545Answered 24/7 · CA License #4348151
Get a reminder before your renewal.
Tell me when your policy renews and I’ll email you about six weeks before, when it’s worth comparing. One email, no calls.