Every broker packet and shipper agreement comes with an insurance section, and carriers tend to sign it without checking whether their coverage actually matches. That is where the trouble starts.
What they require
Brokers and shippers commonly require specific liability limits, a motor truck cargo limit at a stated amount, additional insured status for the broker or shipper, primary and noncontributory wording, and proof of your FMCSA filings. Larger shippers and better-paying lanes often require more than the federal minimum, sometimes substantially more.
The certificate trap
A certificate of insurance proves a policy existed when it was issued. It does not, by itself, prove that the additional insured endorsement or the specific wording the contract requires is actually on your policy. The endorsement behind the certificate is what satisfies the requirement, and the gap between a certificate and a real endorsement is exactly where carriers get caught.
Where the gaps bite
Two gaps are common. The cargo limit in the contract may exceed what you carry, leaving you short on a claim or unable to haul the load. And the liability limit or additional insured wording may not match, putting you in breach of the agreement. Either can cost you the load, the contract, or a claim.
What to do
Before you sign a broker agreement or shipper contract, compare its insurance section to your actual policy and filings, not just your certificate. Confirm the limits, the cargo coverage, the additional insured and primary wording, and the filing requirements all line up. An insurance requirements review does exactly that, so you can sign and haul without a gap.
The contract wording brokers actually demand
Brokers and shippers do not just want to see a certificate. They want specific wording on your policy, and the load agreement usually spells it out. The common requirements are being named as an additional insured, primary and non-contributory language so your coverage pays first before theirs, a waiver of subrogation so your carrier cannot come back against them, and a notice-of-cancellation provision so they are told if your coverage lapses. A certificate that lists them in the description box is not the same as those endorsements actually being on the policy, and a broker’s contract can hold you in breach, or refuse the load, if the endorsements are missing. Before you haul for a new broker, read the insurance section of their agreement and confirm your policy can actually deliver the endorsements it demands, because the certificate opens the door and the endorsements are what keep you compliant.
Questions to ask your advisor
- Do my liability and cargo limits meet what this contract requires?
- Is the additional insured endorsement actually on my policy, not just on the certificate?
- Does my policy carry the primary and noncontributory wording the contract asks for?
- Are my FMCSA filings in order and verifiable for this broker or shipper?
- Where, if anywhere, does this agreement go beyond what my current coverage provides?
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