31 Mar Insurance for Freight Brokers
Insurance for Freight Brokers
Being a Freight Broker may be less hazardous than companies actually involved with shipping, however, there are many exposures that require proper coverages to protect the business. We will review some of the most important coverages for Freight Brokers.
Insurance for Freight Brokers – Professional Liability
Professional Liability, also referred to as Errors and Omissions, or E&O is a very important coverage that is often overlooked by Freight Brokers. Professional Liability is designed to cover you against claims that arise from professional advising, consulting, and other professional services. As a Freight Broker, there are many situations where you are advising others on various business operations. If this advice causes others financial harm, your Professional Liability policy may be what saves your business from a devastating legal claim.
Insurance for Freight Brokers – Business Owners Policy
Business Owners Policies are very affordable for Freight Brokers because the main exposure is in an office setting. Business Owners Policies combine General Liability and Business Personal Property coverage into a single policy. Depending on the program, there are often additional coverages you can include that can be very useful in the event of a loss. We always recommend Business Income coverage, which can pay you for lost income in the event of a covered property loss. You can also sometimes bundle your Professional Liability with the same carrier as your Business Owners Policy for additional savings.
Insurance for Freight Brokers – Other Coverages
Every Freight Broker is different and coverage needs may vary. With that said, there are additional coverages that may or may not be important for your business.
Any Freight Broker has employees should have a Workers Comp policy. Workers Comp for Freight Brokers is often very inexpensive as the employees are clerical or sales employees. Many Freight Brokers also opt to purchase Vicarious Liability and Contingent Cargo Insurance, both of which can provide additional coverages to help fill in the gaps of coverage that your other policies may have. Lastly, purchasing a Commercial Umbrella is a great way to increase your coverage limits and is often very affordable.
To learn more about obtaining the right Insurance coverages for your business, give us a call at 925-297-4829.
All information is general in nature and is intended to provide guidance only. It is up to you to request specific coverage options, the agency and agent do not bear this responsibility. Always read the policy if there is a questions about coverage or a claim. If any information herein should conflict with your actual policy’s specific language, the policy language will be controlling.