For those in the freight industry, liability insurance for repairs to a fleet can be a significant investment. With rising insurance rates for operators and owners, it can be a challenge to find affordable forms of insurance to protect your business.
Brokers in the trucking industry looking to secure their assets would probably need contingent cargo insurance. For smaller brokerages, this can cost between $1,500 to $2,000 per year. This type of insurance provides additional coverage if a cargo insurance claim is denied or parties in the agreement don’t meet their financial obligations.
Just like other types of insurance, various factors can impact the cost of contingent cargo insurance plans. This includes the level of perceived risk by the insurance company, which is based upon factors like the type of cargo being transported, brokerage history, and the overall value of your goods.
Since freight brokers are responsible for negotiating deals between shippers and carriers, they can be blamed if anything goes wrong during the shipping process. If there is damage or losses to a shipper’s cargo and a carrier is unable to pay, the freight broker may be held accountable for this cost.
Because of this, contingent cargo insurance can be an extremely valuable investment for brokers.
If you want to learn how to look for a reputable trucking insurance agent, check out the rest of Assured Standard today.