Insurance for Freight Brokers & Freight Forwarders
Your insurance needs depend on your role in moving freight. Insurance Professionals, LLC helps you explore options based on your operations, contracts, and responsibilities.
Freight Brokers
A freight broker arranges transportation between shippers and carriers but does not take physical possession of the freight. Brokers are licensed by the FMCSA and must maintain a BMC-84 surety bond (or a BMC-85 trust fund alternative) as a condition of their operating authority. Because brokers do not handle the freight directly, their primary insurance exposures relate to their role in arranging transportation. Coverage options to discuss include contingent auto liability (which may respond when a carrier's primary liability coverage does not) and contingent cargo liability (which may respond when a carrier's cargo coverage does not). General liability and workers' compensation are also commonly reviewed. A BMC-84 surety bond is a regulatory requirement — it is not a substitute for liability or cargo insurance.
Freight Forwarders
A freight forwarder takes on responsibility for the transportation of freight on behalf of shippers. Unlike a broker, a forwarder may issue its own bill of lading and assume liability for the cargo. Freight forwarders operating in interstate commerce are also licensed by the FMCSA and must maintain a BMC-84 surety bond (or a BMC-85 trust fund alternative). Because forwarders assume greater responsibility for the freight, their insurance needs are typically broader. Coverage options to discuss include contingent auto liability, contingent cargo liability, general liability, and workers' compensation. The appropriate coverage depends on your specific operations, contracts, and the commodities you handle. Not every contingent cargo policy covers every commodity, theft scenario, or circumstance — limits, exclusions, and underwriting requirements apply.
What Helps Us Prepare
Tell us your authority type (broker, forwarder, or both), the services you provide, the commodities you handle, your estimated annual revenue, and whether you take physical possession of freight. Relevant customer contracts and current insurance documents can also help.
Frequently Asked Questions
Coverage availability and terms vary by operation, state, market, and underwriting. A quote request does not bind coverage. The BMC-84 surety bond is a regulatory requirement and is not a substitute for liability or cargo insurance.
Keeping Your Broker or Forwarder Authority in Good Standing
Your responsibilities continue after your bond or trust filing is issued. Review FMCSA's financial-security requirements, notification procedures, and rules that can affect your operating authority.
Review Official FMCSA Financial Responsibility RulesOpens fmcsa.dot.gov in a new tab. Requirements effective January 16, 2026 are already in effect.
Ready to Discuss Your Coverage Options?
Contact Insurance Professionals to explore insurance options for your freight brokerage or forwarding operation.
Tell us about your operation. We'll review your information, discuss available options, and explain the next steps.