Freight Broker Insurance
Contingent Auto Liability
Protection for freight brokers named in lawsuits over accidents involving the carriers they arrange.
What It Is
When a carrier’s truck is in a serious accident, the freight broker who arranged the load is often named in the lawsuit too. Contingent auto liability can respond when a broker is held liable for an accident involving a carrier it arranged, typically when the carrier’s own insurance doesn’t respond or isn’t enough. It doesn’t replace the carrier’s auto liability; it sits behind it.
What It Typically Covers
- Covered claims against the broker arising from accidents involving arranged carriers
- Legal defense against covered claims
- Some policies also respond to claims that the broker negligently selected the carrier; others don’t
Common Gaps to Watch For
- It isn’t primary auto coverage. If you own or operate trucks, you need your own auto liability.
- Negligent selection claims may or may not be covered. Ask specifically.
- Carrier vetting requirements. Some policies require you to follow certain carrier selection procedures.
- Limits may be lower than the size of today’s trucking verdicts.
Who Usually Needs It
Freight brokers and 3PLs that arrange truck transportation. Shippers often require it in broker contracts.
What Underwriters Consider
- Revenue and load volume
- Your carrier vetting and monitoring procedures
- The commodities and lanes you broker
- Your claims history
- Whether you also operate trucks
Questions to Ask
- Does my policy cover negligent selection claims?
- What carrier vetting does my policy require?
- When does the policy respond, and what must happen first?
- Are my limits in line with my contracts and today’s claim sizes?
All coverage is subject to policy terms, conditions, and exclusions.
Last reviewed: November 1, 2026
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Licensed in Illinois.