Freight Broker Insurance
Contingent Cargo
Protection for freight brokers when a carrier’s cargo coverage doesn’t pay a loss.
What It Is
If freight is lost or damaged and the carrier’s cargo insurance doesn’t pay, because of an exclusion, a denied claim, or too little coverage, the shipper may look to the broker. Contingent cargo coverage can respond when the carrier’s cargo coverage fails, typically on the condition that the carrier had cargo insurance in place when the load moved.
What It Typically Covers
- Covered cargo losses when the carrier’s cargo insurance doesn’t pay
- Legal defense against covered claims, depending on the policy
Common Gaps to Watch For
- Carrier insurance conditions. Many policies require that the carrier had cargo coverage when the load moved, so verify certificates.
- Excluded commodities, like those on many carrier policies, may also be excluded here.
- It isn’t full-value coverage for the shipper. For that, consider shipper’s interest coverage.
Who Usually Needs It
Freight brokers and 3PLs, especially those handling higher-value freight or with contracts making them responsible for cargo losses.
What Underwriters Consider
- The commodities and values you broker
- Carrier vetting and insurance verification practices
- Your claims history
- Revenue and load volume
Questions to Ask
- What conditions must be met for the policy to respond?
- Which commodities are excluded?
- How should I verify carriers’ cargo coverage?
- Would shipper’s interest coverage be a better fit for some loads?
All coverage is subject to policy terms, conditions, and exclusions.
Last reviewed: November 1, 2026
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Every business deserves an agent who understands its operation, represents it honestly, and stays engaged after the policy is bound.
Licensed in Illinois.