June 27, 2019
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September 30, 2019



Can a Freight Broker be legally liable for a loss that does not result in bodily injury, property damage, or pollution damage that is not covered in a Freight Broker Auto Liability or General Liability policy?

Can a Freight Broker be legally liable for financial loss that is not a cargo loss or damage to the property of others?

These are two fundamentally important questions for a Freight Broker to consider when contemplating the purchase of Professional Liability Insurance*, which is sometimes referred to as Errors & Omissions Insurance.

The answer to both questions is YES. Freight Brokers can and have been held legally liable for losses that are beyond bodily injury, property damage and loss of cargo.

A Professional Liability policy covers the insured’s legal liability for errors and omissions that are committed during the normal course of a Freight Broker’s business. A Freight Broker may make mistakes while undertaking daily operations (i.e. overlooking a critical piece of information or inadvertently conveying misinformation) and could be sued by their clients.

Specifically, a Freight Broker needs Professional Liability Insurance to cover their legal liability for the following exposures:

  • Failed Delivery – i.e. the Freight Broker instructed the Motor Carrier to deliver the goods to the wrong location.
  • Miscommunication – i.e. the Freight Broker told the Consignee that the load would be delivered on Thursday when he meant Tuesday.
  • Regulatory Errors – i.e. the Freight Broker did not know the regulations and the load was impounded by a civil authority.
  • Discrimination – i.e. the Freight Broker was perceived to discriminate against a long-standing Motor Carrier in favor of another one.
  • Negligent Hiring – i.e. the Freight Broker hired an incompetent Motor Carrier whose deficiencies resulted in financial loss other than bodily injury, property damage or loss of cargo.
  • A Shipper or Consignee can have other costs and expenses beyond the loss of cargo for which an insured is legally liable.
  • Negligent Acts
  • Negligent Omissions

On these and other important transportation insurance questions, PFA Transportation Insurance & Surety Services can help make sure you are properly protected with the right transportation insurance solutions while you focus on building your business.

That is what we are here for – to give you What You Need. When You Need It. And to protect your business while ensuring your success.

Call us today for more information at 800-595-2615.

*Actual coverages vary by insurance company and are relative to the circumstances of a claim.