A broker's exposure is professional, not vehicular: a mistake in arranging transport, a carrier vetting failure, a damaged or misrouted load. Broker liability and errors and omissions respond to that.
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A broker does not own trucks, but it carries real liability for how it arranges transport: selecting and vetting carriers, handling loads and documents, and the consequences when something goes wrong. Errors and omissions or broker liability responds to that professional exposure, which general liability and auto policies do not cover.
A growing exposure for brokers is negligent-selection claims, alleging the broker should not have used a particular carrier after a serious accident or cargo loss. Broker liability coverage is central to managing that risk, alongside solid carrier-vetting practices and contracts.
Broker liability usually sits alongside contingent cargo and general liability, and the FMCSA broker bond or trust is a separate requirement. We build the broker's program around the professional exposure and coordinate it with the authority side.
Tell us how you operate and we will check this coverage against your authority, cargo, and contracts. Educational, no obligation.
Tell us how your brokerage operates and we will build the right coverage.