In the transportation business, you are looking for intelligent solutions on every front. You don’t have time or money to waste. You can’t keep up with every piece of transportation legislation that may affect your insurance requirements. You want to make sure you’re making the right calls every step of the way. To be successful, you need to stay focused on the job at hand.
When it comes to protecting your business, very few insurers offer all of the different lines of insurance that a domestic freight broker needs.
This is why LOGISTIQ Insurance Solutions — a GSIS Company — developed Broker Shield. It is smartly designed to bring together everything a freight broker needs – in one program.
It is a unique program with tailored insurance coverage for your customer base, it includes LOGISTIQ consulting services critical in risk reduction delivered by industry experts. Broker Shield ensures that domestic freight brokers like you are provided every line of insurance coverage required to keep you on the road and moving forward: From Cargo coverage options and Freight Broker’s Auto Liability insurance to E&O insurance. You can be fully protected against the financial risk of being a freight broker.
Underwritten by top-rated insurance carriers, Broker Shield offers affordable premiums.
Freight brokers meeting our underwriting standards and following our risk management strategies can become members of our Broker Shield preferred pricing program.
You not only get the right coverage in one program, you secure the most competitive rates.
We live in a fast-changing industry and work in an environment that is subject to important government legislation, policies and procedures. Broker Shield by LOGISTIQ has you covered! By monitoring the industry and all transportation regulations, we take the guesswork out of how your insurance policies should change to stay current, be responsive to your needs and ensure full coverage. (See Risk Management consulting below)
Lines of Coverage
Broker Shield features everything you need to manage your business without worrying about whether you are protected from the many risks that come with operating as a freight broker. It includes the following specialty lines of coverage:
Freight Broker Auto / Third Party Legal Liability
Sometimes called Contingent Auto Liability insurance or Freight Broker Auto Liability Coverage responds to defense costs from 1st dollar plus any judgement levied when a freight broker is named as one of the defendants in a lawsuit related to bodily injury or fatality claims when motor carriers they contract are involved in accidents and third parties are injured or killed.
Unlike other forms of insurance that typically have an “annual aggregate limit”, our primary freight broker Auto Liability policy covers up to $1 million per each occurrence.
The added value of Broker Shield is provided by LOGISTIQ on the strength of our national network of skilled and experienced lawyers specializing in defending freight brokers. If the need arises, your freight brokerage firm will have the most skilled and experienced team of lawyers available to defend against a lawsuit in any state.
The Freight Liability Extension attached to Broker Shield covers additional financial liabilities beyond those associated with cargo. These could include pollution cleanup or associated fines, libel and slander, fraud committed by employees, infringement of another company’s intellectual property rights or fines issued for breaking the laws or regulations surrounding the movement of freight.
This aspect of Broker Shield coverage offers a total response to the legal liability a domestic freight broker may be exposed to during regular business. Broker Shield includes a provision called “duty to defend”. This defense provision is a critical factor as the policy deductible does not apply to this cost. All attorney costs are paid. Working in conjunction with the most knowledgeable legal teams across the country, we ensure that you receive specialized defense support from attorneys who are focused on representing domestic freight brokers.
Broad Form Contingent Cargo Insurance
Broker Shield includes Broad Form Contingent Cargo Insurance, coverage that is required when a freight broker assumes responsibility for lost cargo or damages that the motor carrier has not paid. When a freight broker gets into a contract, the document should be carefully reviewed to establish whether the freight broker is assuming liability under D.O.T. Domestic Freight Broker authority. These contracts can contain indemnity clauses that could cause you to be responsible for a cargo claim should the trucker fail to pay that claim. Coverage under this insurance is available for FTL (Full Truck Load) shipments under most circumstances. However, it should be pointed out that some types of high-risk cargo — such as alcohol, tobacco, expensive electronics, cell phones, copper and other non-ferrous metals — require a broader form of cargo coverage in conjunction with a strategic risk-management program designed to reduce theft. The LOGISTIQ team standing behind the Broker Shield program will assess your particular situation to ensure you have the right coverage in place.
Freight Broker Excess Liability
Excess Auto Liability coverage is offered to complement the primary freight broker auto liability policy. LOGISTIQ offers additional coverage of up to $25,000,000. Given the current insurance market, this is likely to be the highest limit available for Domestic Freight Broker’s Auto Liability.
Professional Liability (Errors & Omissions)
Errors & Omissions responds to the legal liability for financial loss (not limited to the value of the cargo) incurred by a freight broker’s client caused by the freight broker’s negligence, error or omission in the normal course of providing domestic freight broker services. First dollar defense is provided under this line of coverage as well.
Broker Shield includes a General Liability policy that is intended to respond to the financial risk that can be assumed for third-party bodily injury claims occurring on your premises.
All Risk Domestic Shipper’s Interest Cargo Coverage
Moving freight with LTL (Less Truck Load) Motor Carriers necessitates a broader form of Shipper’s Interest coverage than what is typically provided. LOGISTIQ can set up a Shipper’s Interest cargo program in which insurance coverage is purchased on a per-shipment basis where costs for the coverage can be passed on to owners of the cargo for those who desire full replacement cargo coverage. We offer a web-based insurance platform that allows coverage to be put in place instantly.
As a cargo insurance provider, LOGISTIQ can place cargo coverage for high-risk cargo, as long as proper security is in place during the movement of the freight. Freight Brokers who move higher risk cargo will not typically qualify for a Contingent Cargo Broad-form insurance policy, but need a primary cargo program in which adequate security must be present while moving freight.
BROKER SHIELD RISK MANAGEMENT CONSULTING SERVICES
LOGISTIQ offers Risk Management Consulting Services to all Broker Shield clients. As part of this added value, we:
Consistently monitor, review and assess the latest transportation industry regulations and legislation to ensure that your coverage does what it is intended to do: Protect you against the risk of doing business both at home and abroad.
Review and provide advice on amending or negotiating current shipper agreement wording to protect your freight broker business model. Court rulings over the past several years have made it clear that contracts and other representations will be considered in determining what services a party signs on to perform. Under federal law, this determines whether or not a party has liability.
Help develop a model agreement for shippers, as needed, to use as a resource to evaluate and negotiate the wording of future shipping agreements.
Shipper-Broker Contract guidelines will asset freight broker’s in avoiding uninsurable exposures present in many shipper contracts and assist them in offering shipper a better alternative then misrepresenting a freight broker as a motor carrier in these contracts.
Review the agreements currently in place with motor carriers. These contracts, if drafted properly, can help to manage liability and have a meaningful impact on reducing financial exposures for both the freight broker and the client.
Help to resolve claims, including subrogation, as an extension of your services.
Partner with a technology provider that offers freight broker access to critical data, including the status of a motor carrier’s common carrier or contract carrier authority, their present safety ratings and the status of their insurance coverage.
Aid with evaluation and qualification of motor carriers.
Create a risk score card to use while evaluating carriers and provide a practical defense against a bad claim.
Assist in assessing the AM Best financial rating of a Motor Carrier’s insurer.
BROKER SHIELD CLAIM SUPPORT SERVICES
If you typically move full truck-load shipments, the main liability for damage done to cargo or cargo theft rests with the motor carrier. Our claims division — Subrogateway USA — offers support to make collection of cargo claims against motor carriers easier. With over 70 years of combined experience in processing these cargo freight claims, our knowledgeable staff will support the expedient resolution of claims so they do not escalate.