Brokers have special coverage needs because they are acting as freight agents for shippers. Brokers are required to register with the Federal Motor Carrier Safety Adminstration (FMCSA) and supply evidence of a $75,000 surety bond.

Great West has developed several coverage forms to meet the needs of brokers. They are:

1. Auto Liability or Cargo coverage for Brokerage Concerns - Broadened Contingent coverage

The hauling carrier is required to have a written agreement with you and to furnish you with a copy of its policy, an Additional Insured endorsement, or a certificate of insurance. The policy will respond if at the time of the covered loss, coverage required by your brokerage agreement is not collectible. The limit of insurance payable by this form is reduced by all sums paid by or on behalf of the hauling carrier.

2. Motor Carriers - Named Broker as Insured coverage (including cargo)

We attach this Additional Insured endorsement to the hauling carrier’s Great West policy. As a carrier, you need to have a written brokerage agreement with a hold harmless agreement in place with the broker. Our endorsement will then provide primary liability and cargo coverage for you and the broker, including contractual liability and a provision for a notice of policy cancellation or reduced limits.

Be sure to also ask your agent about:

  • Insuring an owned auto titled in the brokerage business name.

  • Hired and Non-Owned Auto Liability coverage. Some examples of exposures: an auto rental on a business trip or an employee using his or her car on brokerage business.

  • Commercial General Liability coverage for the office exposure, off-premises sales calls, and independent contractors operating on your behalf.

  • Workers' Compensation covering officers, office staff, and other employees of the brokerage entity.

Second Level Coverage

We attach this endorsement to provide the broker coverage in excess of what is required by the motor carrier in its contractual agreement with the broker. For instance, if the agreement between the broker and the motor carrier requires the motor carrier to maintain $1 million of liability coverage, but the broker wants $2 million of coverage for himself/herself, we would use this endorsement to provide that additional coverage. This endorsement provides coverage only for the broker; the motor carrier is not the insured.

This summary is intended for informational purposes only and does not replace or modify the definitions or information contained in any insurance policy or declaration page, which controls all coverage determinations. Terms and conditions may vary by state, and exclusions may apply.