types of coverage available for transport agents and freight forwarders
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intermediary trust fund
A trust fund in the amount of $75,000 is an option under 49 cfr part 387.307 that a licensed real estate broker may use in lieu of a surety bond. A BMC-85 form is used to file with the FMCSA and remains in effect until canceled by the bonding company. The trust fund is used to ensure the broker’s financial responsibility by providing payments to shippers or motor carriers if the broker fails to honor its contracts, agreements, or arrangements for the provision of transportation by authorized motor carriers. Where a bail bond is managed by the bail bond company, the owner of a trust fund has more control over how the fund’s claims are paid.
Reading: What is contingent cargo insurance
contingent cargo legal liability
This type of policy is designed to protect a freight forwarder or freight forwarder against liability incurred in arranging to move cargo for others. Contingent cargo liability provides coverage when a trucker’s motor truck primary cargo policy does not assume liability for cargo loss or damage. These policies respond to the legal responsibility that transport agents and cargo agents assume by law.
The main benefits include:
- Claims Support: Attorneys and freight claims processing specialists will provide support and advice to help collect claims from truckers and their insurance companies.
- Attorney fees and costs to defend your business from lawsuits related to cargo damage and theft: If a trucker’s motor truck cargo policy fails to satisfy a legitimate cargo claim and a lawsuit is filed against the freight forwarder or carrier, defense coverage is provided. The costs associated with these types of lawsuits can be significant, even if they are unfounded. With this coverage, your firm will avoid incurring the legal expenses associated with defending or paying the cargo claim. the cost of the attorney’s fees, plus any settlement, will normally be paid up to the policy limit.
automobile contingent liability
This policy is designed to protect against liability assumed by freight brokers and freight forwarders when their contracted truckers are involved in accidents resulting in bodily injury, death, or property damage. defense coverage will normally be provided in most policy forms and the insurance company will assign an attorney to defend the freight broker or freight forwarder. the policy will cover the cost of the attorney and, if found liable, will pay the agreed settlement amount up to the policy limits.
responsibility of the truck driver
This policy is designed for trucking brokers, in conjunction with trucking operations, that have brokerage authority. provides primary coverage, not the less adequate auto contingent liability that policyholders currently have. The trucking broker’s liability policy is a hybrid primary liability policy that addresses the trucking broker’s general liability arising out of the ownership and use of a truck by the motor carrier of a negotiated freight movement, pursuant to a written trucking brokerage agreement.
Trucking Broker Liability (Primary) coverage provides bodily injury and property damage liability coverage that protects the trucking broker if brought under legal action caused by a trucking accident involving a motor carrier who had a load delivered. Liability limits like an auto liability policy apply to each accident with no policy add-on. defense costs are outside the limits of liability. the same coverage applies regardless of the type of cargo transported.
a policy designed to address liability that a freight forwarder might assume, in addition to cargo liability or liability as a result of driving a vehicle. for example, if an outside trucker or warehouse staff were injured as a result of unloading cargo from a truck and the freight forwarder is involved in a lawsuit. defense coverage will normally be provided on most policy forms where the insurance company will appoint an attorney to defend the freight forwarder/carrier and incur those costs and, if found liable, will respond to the amount of the agreed settlement up to the limits of the policy.
freightguard spot cargo insurance program
Carriers, freight forwarders and carriers use freightguard to provide protection against all risk of loss or damage to cargo in transit. for high-value freight, they can’t rely on traditional cargo policies that contain numerous exclusions and claim conditions. many times, settlement is based on weight. cents per pound.
freightguard’s insurance policy is a significantly broader form of coverage, which is in the name of the party that actually owns the cargo. when an accident occurs, you do not have to prove who was responsible for the damage or theft, only that it occurred during insured transit.