Commercial Truck Insurance for Fleets and Owner Operators

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Freight Brokers Insurance

With the implementation of CSA, Freight Brokers are held to a higher standard to vet carriers before tendering them a load.

You should keep a current file for every motor carrier that you deal with. “Current” means that you keep the data current with the most recently published FMCSA information and make sure to update the file at least annually. Keep in mind that SMS scores are updated on a monthly basis and it would be best to verify a current SMS score prior to tendering each load.

Copies of items for the motor carrier file include:

  • Operating Authority(s) - it is best to use motor carriers who have been in business at least 3 years or more under the current name
  • Insurance Filing(s), such as the BMC-91X - It is best to make sure the insurance carrier is rated A- or better by AM Best
  • The signed and dated Broker/Carrier agreement
  • Safety Rating - It is best to use only carriers with Satisfactory ratings
  • FMCSA SMS BASIC’s scores - It is best to not use carriers with more than one “!” status
  • Certificate of insurance evidencing all insurance(s) - Be sure the cargo liability is “Broad Form” and that if you are brokering a Reefer load that the certificate of insurance shows proof of Reefer Breakdown coverage.

The above is just a minimum suggestion and other Best practices would include doing a Credit Check and always making sure that the motor carrier’s name appears on the Bill of Lading (BOL) and not yours. Without the motor carrier listed on the BOL as the hauling carrier the motor carrier’s insurance company could deny coverage. Another Best practice is to call the motor carrier at their phone number listed online with the FMCSA and verify that the person setting up the load is legit and a representative of that motor carrier and that he/she did infact accept the tendered load prior to tendering the load. Brokers and shippers getting scammed by truckers posing as motor carriers has become a huge problem. There are some great motor carrier monitoring systems out there that can save your people time and oversight issues including Transcore’s Carrier Watch.

Insurance Coverage that we offer to our Brokers include:

  • Contingent Broker Auto Liability
  • Contingent Broker Cargo Liability
  • General Liability and Property Insurance
  • Worker’s Compensation
  • Employment Practices Liability
  • Broker E&O Insurance
  • Cyber Liability
  • Bonds And much more…

Be sure to develop motor carrier procedure guidelines and that your people involved follow it to a tee – every time. This is so important should you have to submit a claim to the motor carrier’s insurance company or your own.