Freight brokers are a bridge between people who need to ship goods and those who actually ship them. Because these brokers don’t handle the freight, some may falsely assume they don’t need insurance protection. However, because these professionals handle steps such as doing paperwork, negotiating rates, and managing logistics, insurance protection is critical.
The Federal Motor Carrier Safety Administration doesn’t require cargo insurance, but that doesn’t mean that it should be left off a checklist for anyone involved in the movement of goods through the logistics process. Many shippers require cargo insurance before they enter into a contract for transporting goods. At Commercial One Insurance Service, we understand the importance of insurance and can discuss your needs with you.
Why Would Freight Brokers Need Cargo Insurance?
Even though freight brokers don’t touch cargo directly, they act as intermediaries. If cargo goes missing due to theft or damage, the freight broker could be named in a lawsuit. Knowing that the replacement value of the cargo is covered by insurance can help in this situation.
Another good reason for freight brokers to have cargo insurance is that it can set them apart from those who don’t have this coverage. Some shippers may consider cargo insurance to be confirmation that the broker fully understands the importance of protecting the goods. This may go a long way in shoring up their reputation in the industry, which can lead to an increase in repeat business.
Logistics insurance is one of the primary ways freight brokers and others can protect their interests. Contact us at Commercial One Insurance Service to learn more about this coverage and get a quote to protect your Burlingame, CA, business.
