Freight Broker Insurance
Shipper’s Interest
Cargo coverage arranged for the shipper, covering the freight’s value regardless of the carrier’s liability.
What It Is
Shipper’s interest is cargo insurance arranged for the benefit of the owner of the goods. Instead of depending on the carrier’s liability, which may be limited or disputed, it covers the freight’s value directly, subject to the policy terms. Brokers often offer it to customers on individual loads.
What It Typically Covers
- Loss of or damage to insured freight in transit, up to its insured value
- Losses where carrier liability is limited, denied, or disputed
Common Gaps to Watch For
- It must be arranged before the load moves. It can’t be added after a loss.
- Excluded commodities and conditions still apply.
- Offering it to customers may require an insurance license in some states, so set it up with your agent before you charge customers for coverage.
Who Usually Needs It
Freight brokers and 3PLs that want to offer customers full-value protection, and shippers moving high-value freight.
What Underwriters Consider
- Commodities and values
- Shipping lanes and modes
- Packaging and handling
- Loss history
Questions to Ask
- How do I arrange coverage on a specific load?
- What does the shipper receive after a loss, and how quickly?
- What commodities are excluded?
- What are my obligations if I offer this to customers?
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.