Errors & Omissions (E&O) Insurance

A Must for Freight Brokers and Freight Forwarders alike.

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Errors & Omissions coverage is a must for freight brokers and freight forwarders alike. Freight broker E&O insurance or professional liability insurance is designed to respond to the legal liability on the part of a freight broker’s negligence. It is important to point out that E&O insurance does not directly insure against cargo loss or damage, bodily injury, or property damage, but can respond up to the limits of a policy for the freight broker’s negligence or error/omission in the normal course of doing business.

An example would be providing the motor carrier with the wrong information that eventually leads to a claim on a shipment. Extra costs incurred could be incurred that would not be covered under any form, but could be filed under E&O provided they are covered losses. Policies can be written with defense inside or outside the limit or on an aggregate or per occurrence basis.

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