Get a quoteGet a quoteCasey places commercial insurance for licensed freight brokers and 3PLs — the operators who arrange transportation but don’t run trucks themselves. Brokers need a different coverage structure than motor carriers: contingent cargo, contingent auto, errors & omissions, and the BMC-84 surety bond — not primary auto liability.
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Casey places commercial insurance for licensed freight brokers and 3PLs — the operators who arrange transportation but don’t run trucks themselves. Brokers need a different coverage structure than motor carriers: contingent cargo, contingent auto, errors & omissions, and the BMC-84 surety bond — not primary auto liability.
Overview
A freight broker isn’t a motor carrier. You don’t operate vehicles, so you don’t need primary auto liability. What you do need is coverage for the gaps the motor carrier leaves — and for the professional-services exposure that comes with arranging transportation between shippers and carriers.
The classic broker policy package is four lines: contingent cargo, contingent auto liability, errors & omissions, and the FMCSA-required BMC-84 surety bond (or BMC-85 trust). Most general business brokers don’t write this combination — and the brokers who try to use a motor carrier package end up paying for coverage that doesn’t apply.
“If your broker put you on a motor carrier package, you’re paying for coverage that doesn’t apply to your operation.”
Coverage you’ll typically need
Broker policies don’t include primary auto liability — you’re not the motor carrier. They focus on contingent exposure, professional liability, and the FMCSA surety bond.
Why broker insurance is harder than it looks
Brokers have a different decline profile than motor carriers — most of it tied to claim history on contingent lines and the firm’s E&O exposure.
Open contingent cargo claims
One open contingent cargo claim isn’t a problem. Two or three signals carrier-vetting weakness and tightens the market quickly.
Cargo theft / double brokering history
Double-brokering scams and identity theft losses moved from rare to routine. Carriers underwrite the firm’s vetting controls explicitly now.
New brokerages (under 12 months)
Standard E&O markets often want 12+ months of operation. We have a panel of carriers writing new authority brokers.
Heavy reliance on load boards
100% load board-sourced carrier matches is a higher-frequency loss pattern than direct shipper-carrier relationships.
Targeted commodities (electronics, etc.)
Brokers handling theft-attractive commodities see higher contingent cargo loss ratios; rates step up.
Inadequate carrier vetting
Brokers without documented vetting (insurance verification, identity verification, fraud screening) get rated up or declined on contingent cargo.
What drives your premium
Broker premiums are driven by gross commissions, carrier vetting controls, and commodity mix — not by units or fleet size.
Quote in 24–48 hours
Broker submissions are paperwork-light compared to motor carriers — we’ll work with whatever you have.
Federal compliance
FMCSA regulates freight brokers under 49 CFR Part 371. The two key compliance items are the broker authority itself and the surety bond.
FMCSA broker authority. Property brokers must hold active broker authority (MC #) from FMCSA. Operating without authority is a federal violation and uninsurable.
BMC-84 surety bond ($75,000). Property brokers must file a $75,000 surety bond (Form BMC-84) or a $75,000 trust fund agreement (Form BMC-85). Casey places the bond and handles the filing. Increases under SUPERTRUCKER Act discussion have not yet been enacted.
Broker-carrier agreement records. FMCSA requires written agreements with each motor carrier used. Maintaining these is a frequent E&O claim defense and a shipper audit topic.
Common questions