Truck Broker Liability Coverage: Take Broker Bonds one step further

Truck Broker Liability (TBL) coverage

The freight brokerage market is poised to grow by $41.47B between now and 2024.

Truck or freight brokers have special coverage needs because they are acting as freight agents for shippers, helping them find someone skilled to transport the load.

freight broker bond (BMC-84) is required by the FMCSA for freight brokers before receiving a freight broker license. The surety bond protects clients from potential fraudulent acts like price manipulation, or brokers falsifying information on claims.


Today, Truck Broker Liability (TBL) coverage is more important than ever, especially the change in shipper demands as they become more educated on extra insurance coverages they want truck brokers to have.

But why is Truck Broker Liability Insurance so important?

In the case of an unforeseen event (such as an accident) where the broker is pulled into a lawsuit because a 3rd party was injured (both property damage and bodily injury) by the actions of a party he was doing business with, Truck Broker Liability insurance, also known as contingent liability insurance, could defend and pay up to the policy limits if the insurance company deems it necessary to pay or loses a law suit.

Truck Broker Liability coverage will help truck brokers meet risk acceptability standards with shippers.

What kind of insurance coverages do brokers need?

Today, brokers need a wider variety of protection that often includes:  

  • Truck/Freight Broker Auto, General Liability Coverage – Up to $5,000,000
  • Professional (E&O) – Up to $1,000,000
  • Contingent Cargo Liability – Up to $500,000

Truck Broker Liability is designed for truck brokers, along with trucking operations, that have brokerage authority. TBL is a hybrid primary liability policy that addresses the truck broker’s general liability arising out the ownership and use of a truck by the motor carrier of a brokered cargo move, in compliance with a written truck brokerage agreement.

It provides bodily injury and property damage liability coverage protecting the truck broker if legal action is taken as a result of a truck accident involving a motor carrier to whom they brokered a load.

General Liability is designed to respond to the liability a freight broker could assume other than liability to cargo or liability as result of a vehicle being driven. For example, a freight broker might be pulled into a lawsuit if third-party trucker or warehouse personnel was injured as a result of cargo being unloaded from their truck.

Errors and Omissions Insurance (E&O or professional liability) is designed to protect brokers from lawsuits that claim you made a mistake in your professional services and can help cover expensive court costs or settlements.

Contingent Cargo Legal Liability is designed to protect a transportation broker or freight forwarder against the liability assumed when deciding to move cargo for others. This provides coverage when a trucker’s primary motor truck cargo policy fails to assume the responsibility for cargo loss or damage.

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