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CONTINGENT

Auto Liability Insurance for Freight Brokers

  • Contingent Auto Liability

  • Contingent Auto Liability provides protection when a carrier's auto liability policy fails to pay for bodily injury or property damage caused during transit.

  • What Is Contingent Auto Liability?

  • This policy protects freight brokers from claims arising from truck accidents, bodily injury caused by the carrier, and damage to other vehicles or public property.

  • Why Freight Brokers Need It:

  • Shippers increasingly require freight brokers to carry this coverage to ensure full risk management.
  • Get a quick quote today and stay fully compliant.
Description
Auto Liability

Comprehensive Contingent Auto Liability Insurance for US Freight Brokers

Protect your freight brokerage from significant financial risks with our specialized Contingent Auto Liability coverage designed specifically for the US logistics industry.

What is Contingent Auto Liability Insurance?

Contingent Auto Liability insurance is a critical protection layer for freight brokers that covers your liability exposure when a motor carrier you've hired causes an accident resulting in bodily injury or property damage. This coverage activates when the carrier's primary insurance is insufficient, denied, or non-existent.

As a freight broker, you arrange transportation services between shippers and carriers. While carriers are primarily responsible for accidents during transit, brokers can face significant liability under the legal principle of "vicarious liability" and through contractual obligations with shippers.

Primary Coverage Triggers

  • • Carrier Insurance Failure: Coverage activates when a carrier's insurance denies a claim, has insufficient limits, or is invalid
  • • Bodily Injury Claims: Protection against lawsuits for injuries to third parties caused by carrier accidents
  • • Property Damage: Coverage for damage to other vehicles, structures, or public property
  • • Supplementary Payments: Additional expenses including bonds, appeal bonds, and loss of earnings

Risk Protection Areas

  • • Negligent Selection Claims: Defense against allegations of failing to properly vet carriers
  • • Contractual Liability: Protection for liability assumed in broker-shipper contracts
  • • Shipper Requirements: Meets insurance requirements from major shippers and Fortune 500 companies
  • • Business Continuity: Protects your brokerage from catastrophic financial loss

Core protection that safeguards your brokerage's financial stability and reputation.

Policy Benefits

  • • Flexible Limits: Options from $1 million to $5 million+ to meet shipper requirements
  • • Nationwide Coverage: Protection across all 50 states
  • • Carrier Monitoring Support: Resources to help verify carrier insurance compliance
  • • Claims Handling: Expert claims management with 24/7 support
  • • Risk Management: Access to safety resources and best practices

Why US Freight Brokers Need This Coverage

The transportation industry faces increasing litigation and regulatory scrutiny. Without Contingent Auto Liability coverage, freight brokers risk:

Financial Exposure

Average truck accident settlements exceed $500,000, with catastrophic accidents reaching millions in damages.

Legal Vulnerability

Courts increasingly hold brokers responsible for accidents involving carriers they arranged.

Business Loss

Single uninsured claim can bankrupt small to mid-sized brokerages.

Contractual Requirements

Over 80% of major shippers now require brokers to carry contingent auto liability coverage.

Ready to Protect Your Freight Brokerage?

Don't leave your business exposed to catastrophic financial risk. Our Contingent Auto Liability insurance is specifically designed for US freight brokers, with coverage options tailored to your specific operations, carrier base, and shipper requirements.

Speak with our specialized freight broker insurance experts to design the perfect protection plan for your business.

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Got Questions?

Frequently Asked Questions

Quick answers to the most common questions about Contingent Auto Liability Insurance for freight brokers.

Contingent Auto Liability Insurance protects freight brokers when a carrier’s auto liability insurance fails, is insufficient, or does not respond to a covered claim involving bodily injury or property damage.

No. Contingent Auto Liability does not replace the carrier’s primary auto liability insurance. It provides secondary protection that applies only when the carrier’s coverage does not respond.

Shippers and contracts often require brokers to carry Contingent Auto Liability coverage. If a carrier’s insurance denies a claim, the broker may still be held responsible. This coverage helps protect brokers from costly lawsuits and liability claims.

Coverage generally applies to bodily injury and property damage arising from a carrier’s vehicle operations, when the carrier’s auto liability policy fails to provide coverage.

Contingent Auto Liability Insurance is typically affordable and available in annual policy options. It offers essential protection for freight brokers against high-risk liability exposures.

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