Brookhurst Insurance provides commercial auto insurance to all types of businesses across California and the United States. We are located in Woodland Hills, California and are available to serve all of your business’s general liability needs.
While freight forwarders are expected to adhere to Carmack Amendment Liability, which is included in the USC code §14706, and defines how claims for freight loss and damage should be handled, freight brokers do not have any Carmack statutory freight claims liability.
Instead, brokers usually obtain contingent cargo insurance as opposed to the more comprehensive primary cargo coverage that forwarders carry, because brokers are not carriers. They simply arrange for transportation on behalf of the carrier or shipper, and cannot issue bills of lading in their own name.
Whether you’re a freight broker or forwarder, or if your company deals with both operations, Brookhurst Insurance can help you find the right insurance cover to protect your business and clients from the risks associated with freight.
Adequate Protection for Freight Forwarders & Brokers
When it comes to getting the right insurance cover, you need to determine what you’re liable for and the approach used in a potential claim against you. For instance, a shipper using a trucker via a broker is not the trucker’s (carrier’s) customer. So the trucker is not directly liable for any loss or damage to your cargo. That said, the trucker may choose to pay a claim without going through a court of law just to maintain good customer relations. Otherwise the outcome is uncertain.
Freight forwarders, on the other hand, are required to carry comprehensive cargo insurance, which protects any loss or damage to the cargo and addresses any issues with the carrier so the client does not incur any losses. So if the carrier claims that they’re not liable, the forwarder is still responsible for legitimate freight claims to the shipper as mandated by the license they carry.
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With multiple parties involved in shipping, it can be confusing knowing what your responsibilities are in the event of damage or loss of the cargo. Brookhurst Insurance agents can help both freight forwarders and brokers obtain the necessary insurance cover to protect themselves and their clients from losses during transportation, giving you peace of mind in the uncertainties of air, road, or rail transport. Please contact Brookhurst insurance agents online or call 818.465.7860 to discuss your specific needs for freight broker & freight forwarders business liability coverage and insurance.
