Protect your Freight Broker business with the right insurance
As a freight broker, it’s your job to help move cargo around the world by matching up those that need goods shipped with shippers able to transport them. By providing this valuable service as an intermediary, your role is integral to the movement of goods worldwide.
Freight brokers often focus on either land, rail, or sea transportation, but your freight broker business may include all of these modes of transport. It’s your job to understand complicated worldwide shipping routes and methods and find the best solutions for your clients to get their cargo where it needs to go.
There is risk involved in your role, and it’s crucial to manage this risk with the appropriate Freight Broker Insurance to safeguard the business you’ve built for yourself. In an uncertain global marketplace, you may not even be able to predict what risks your business faces, so it is essential to get coverage that matches your potential exposure.
What insurance does a Freight Broker need?
As a mover of goods worldwide, but as neither the producer, owner, or recipient of that cargo, a Freight Broker’s Insurance needs are pretty specific. To safeguard your business, you need to protect your part of the freight process. This coverage is necessary given the number of things that can go wrong while shipping freight.
The following coverages that often form part of a typical Freight Broker insurance package are:
- Commercial General Liability coverage protects you against any claims arising from the operations of your business related to property damage or personal injury to third parties. This coverage can also include coverage for completed operations or shipments that have arrived.
- Professional Liability Insurance – despite following all steps, policies procedures and giving your best effort…sometimes things don’t go as planned or mistakes are made which is where freight brokers professional liability insurance steps in to help when an error or omission results in a financial loss to your customer
- Cyber Liability – this coverage is designed to protect your online assets from theft or loss through a malicious attack or data loss.
- Property Insurance can be necessary if your company owns its own office, facility, or equipment. This coverage will protect against extreme weather, flooding, and fire.
- Umbrella or Excess Liability – this type of insurance provides coverage once other liability insurance limits have been reached. It comes into play when there is a significant loss or event.
What are some risks your Freight Broker business could face?
- You arrange a complicated shipment that has to cross multiple international borders. It is very time-sensitive, and a customs delay due to alleged incorrect documentation means it does not arrive on time. The receiving company brings a lawsuit against you for costs related to the delay as it resulted in the forced shut down of their production facility.
- Part of a shipment is stolen while en route to its destination and your company is blamed because of the shipping route and partners chosen.
- A hacker breaches your system and accesses your clients’ shipping data so they can target the goods while in transit.
Find the Right Freight Broker Insurance from ALIGNED
ALIGNED works with 70+ top insurance companies to provide custom insurance packages at affordable prices. Click Here To Get A Quote or contact one of our business insurance experts for information or with any questions you may have.