Freight Broker Insurance

Reliance Partners is a leader in the freight broker and 3PL marketplace.

We understand the risk management challenges of operating a freight brokerage in today’s marketplace.

We have customized products to suit the needs of each individual 3PL. In addition, two of our executive team members can empathize with risk management challenges having previously served in leadership roles for two of America’s largest freight brokers over the past decade.

Auto Liability Coverages

It is very important that you understand the differences between the types of coverages that are available for freight brokerages. There are several different types of liability coverage that can be purchased with respect to Auto Liability including Primary Auto Liability, Freight Broker Liability, and Contingent Auto Liability. It is important freight brokerages understand their exposure and additional risk that might have been accepted contractually.

Auto Liability Coverages


Motor Truck Cargo Options

Cargo claims can be very challenging for freight brokers. It is extremely important that 3PL’s understand this risk. Contingent Motor Truck Cargo is typically the most basic of coverages and is often written as ‘follow-form’. In this scenario, the exclusion in a motor carrier’s can also mean there is an exclusion present in your own policy.

It is important that freight brokers understand their risk and expectations from a customer’s perspective. This often leads 3PL’s to purchased broader forms that can provide coverage on a first dollar basis under legal liability or broad cargo forms.

Motor Truck Cargo Insurance


Other Lines & Coverages:

Outside of the two coverages above, 3PL’s should strongly consider purchasing several other lines of insurance to properly cover their operation.

Freight Forwarding Insurance

  • Cargo Legal: This insurance is designed to cover on legal fees and/or judgments against a freight forwarder.
  • Contingent Auto Liability: Insurance coverage for freight forwarders that is designed to protect against liabilities from damages and/or defense cost in the event that a third-party (generally a trucking company) causes bodily injury or property damage.
  • Errors & Omissions (E&O): This insurance will help protect a freight forwarder from financial losses due to damages caused by a errors and omissions.
  • Excess & Umbrella: Excess insurance coverage is a policy that helps protect a freight forwarder when an underlying policy has been exhausted. It is applied to one policy and can expand coverage. Umbrella insurance coverage is a different type of excess policy and is similar, but can be applied to multiple policies.
  • Freight Forwarder’s Shipper’s Interest Cargo Insurance: This insurance allows freight forwarders to offer cargo insurance to their customers. This coverage is designed to apply to freight that will move via international transit such as ocean or air.
  • General Liability: General liability insurance is designed to protect against freight forwarding liability due to bodily injury or property damage for losses incurred.