Freight Broker Insurance
Freight broker insurance protects your brokerage when a carrier you hired has an accident, a load is lost or damaged, or a shipper claims you made a mistake. The $75,000 BMC-84 bond FMCSA requires isn’t insurance. Contingent auto liability, contingent cargo and errors and omissions are what protect the business. MIG helps freight brokers and forwarders put that program together.
Free and no obligation. We compare options across our insurance carrier partners to help you find the right coverage at a competitive price.
What Is Freight Broker Insurance?
Brokers don’t own the trucks, but they’re still named in lawsuits when a carrier they hired is in a serious accident, and shippers expect them to answer for lost or damaged freight. The carrier’s auto liability and cargo policies are the first line, and broker coverage is there when those fall short.
Brokers and forwarders search for this coverage under several names:
Two 2026 Changes Every Freight Broker Should Know
Supreme Court: Montgomery v. Caribe Transport II
In May 2026, the U.S. Supreme Court held that the FAAAA doesn’t preempt negligent selection claims against freight brokers. Brokers can be sued in state court over the carriers they choose, which makes contingent auto liability and documented carrier vetting more important than ever.
FMCSA broker financial responsibility rule
Effective January 16, 2026: BMC-85 trusts must hold cash, irrevocable letters of credit or U.S. Treasury bonds. If your $75,000 drops below the minimum, you have 7 days to restore it or FMCSA can suspend your authority.
Registration moves to Motus
FMCSA’s Motus system replaced URS and the old L&I system. Your bond or trust provider files your financial security electronically in Motus, the same way insurance carriers file for motor carriers.
General information, not legal advice. Talk with your attorney about how these changes affect your contracts and operations.
Freight Broker Coverage Types
Most brokerages need several of these working together. Availability and terms vary by insurance carrier; your policy documents control.
Contingent Auto Liability
Defense and protection when your brokerage is named in a lawsuit over a carrier’s accident, including negligent selection claims. More shippers now require it.
Contingent Cargo
Can respond to a cargo loss when the motor carrier’s cargo policy doesn’t, such as an exclusion, lapse or denied claim.
Cargo Legal Liability
Defense when a third party holds your brokerage responsible for cargo loss or damage. It’s not meant to pay a claim just because the carrier won’t.
Shipper's Interest (All-Risk)
First-party cargo coverage for the shipper’s goods, regardless of who’s liable. A customer-friendly option for high-value freight. See per-shipment cargo.
Professional Liability (E&O)
Covers claims that your brokerage made a mistake, like a missed appointment, wrong equipment or a paperwork error, that cost a customer money.
General Liability
Injuries or property damage at your office and other non-auto operations. How GL works for trucking.
Excess / Umbrella Liability
Higher limits above your contingent auto, GL or E&O, often required by larger shippers since many carriers carry only $1M.
Cyber & Crime / Fraud
Coverage options for funds-transfer fraud, identity theft and cyber attacks, which are growing risks with double brokering and fictitious pickups.
BMC-84 Surety Bond
The $75,000 financial security FMCSA requires to get and keep your broker authority. It protects carriers and shippers, not you.
Broker Bond vs. Broker Insurance
| BMC-84 Bond / BMC-85 Trust | Broker Insurance | |
|---|---|---|
| Required by | FMCSA, for broker authority | Shipper contracts and your own risk |
| Protects | Carriers and shippers you fail to pay | Your brokerage, against lawsuits and losses |
| Amount | $75,000 | Limits you choose, often $1M or more |
| If it pays out | You repay the surety, and must restore the $75,000 within 7 days | The insurance carrier pays covered claims, subject to the policy |
| Covers carrier accidents? | No | Yes, with contingent auto liability |
Insurance Works Best With Strong Carrier Vetting
After the Montgomery ruling, how you select carriers matters more than ever, and insurance carriers ask about it. A documented process can help with underwriting and with defending a claim.
- Verify authority and filings with FMCSA before every load. How carrier filings work
- Check auto liability limits and the insurer's rating. AM Best ratings explained
- Get certificates from the carrier's agency, not the carrier. What brokers check
- Confirm cargo coverage fits the commodity. Scheduled commodities
- Watch for fraud: identity theft, double brokering and fictitious pickups.
What You'll Need for a Broker Quote
Having this information ready helps a MIG Producer shop your program faster:
- MC number and years in business
- Annual gross revenue and approximate load count
- Commodities you broker, including any high-value freight
- Your carrier vetting and onboarding process
- Shipper contracts with insurance or indemnity requirements
- Current policies and loss runs, if insured
Freight forwarders and 3PLs
Freight forwarders and logistics companies face many of the same risks and have the same $75,000 financial security requirement. Let us know what you do on the form.
Running trucks too?
If you also operate as a motor carrier, see auto liability, cargo and physical damage.
Request a Freight Broker Quote
Tell us about your brokerage and the coverage you’re looking for, and a MIG Producer will follow up with options.
- Free and no obligation.
- Not sure what you need? Leave the coverage boxes blank and we'll walk through it.
Submitting this form doesn’t bind coverage. Inquiries are reviewed Mon–Fri, 8 AM–5 PM ET.
Freight Brokerage Inquiry
For Brokers Working With Carriers
What Brokers Check
Auto liability, filings and AM Best ratings.
Motor Truck Cargo
Scheduled commodities and exclusions.
Per-Shipment Cargo
Coverage for a single high-value load.
Amazon Relay Insurance
Every Relay requirement in one place.
Truckers GL
How general liability works for trucking.
Intermodal / UIIA
Drayage and interchange requirements.
Request a COI
Certificates for MIG client carriers.
Trucking Terms Glossary
Plain-English trucking insurance terms.
Freight Broker Insurance Questions
Do freight brokers need insurance?
What insurance is required for a freight broker?
What is contingent auto liability for freight brokers?
What is contingent cargo insurance?
What's the difference between contingent cargo and shipper's interest?
What's the difference between a BMC-84 and a BMC-85?
What changed for freight broker bonds in 2026?
How does the Montgomery v. Caribe Transport II ruling affect brokers?
How much does freight broker insurance cost?
Is the quote free?
Protect Your Brokerage
Request a freight broker quote or talk to a MIG Producer Mon–Fri, 8 AM–5 PM ET. We’re happy to help.
This page is general information about freight broker insurance and recent regulatory and legal developments. It is not legal advice; consult your attorney about your obligations and contracts. Coverage, limits, eligibility and pricing are determined by the insurance carrier or surety, and your policy and bond documents control. Marquee Insurance Group is an independent insurance agency and does not issue policies or bonds, make underwriting decisions or decide claims.