COVERAGES FOR FREIGHT FORWARDERS

 Surety bonds play a critical role in the freight brokerage industry and are a mandatory requirement set forth by the Federal Motor Carrier Safety Administration (FMCSA) for freight brokers to obtain operating authority. A surety bond serves as a guarantee that the freight broker will fulfill their financial obligations to carriers and shippers. It provides a level of protection and reassurance to the public and the government that the broker will conduct business ethically and responsibly. 

 Contingent Cargo Insurance is a specialized type of insurance coverage designed for freight brokers and logistics companies that arrange the transportation of goods but do not own the vehicles used for transportation. This insurance acts as a safety net to protect the freight broker and their clients in the event that the carrier's cargo insurance is insufficient or does not cover a specific loss or damage to the cargo during transit. 

Contingent Auto Liability Insurance is a specialized type of insurance coverage designed for freight brokers and logistics companies that arrange transportation services using third-party motor carriers. This insurance provides protection to the freight broker in the event that the motor carrier's auto liability insurance is insufficient to cover the damages in case of an accident or incident during the transportation process.