Freight Broker Insurance
Licensed freight brokers need more than the FMCSA-required BMC-84 bond. A complete broker program includes contingent cargo, contingent auto liability, errors & omissions, general liability, and cyber coverage. We place all 7 lines of broker coverage with A-rated carriers in one program β with one renewal date and one broker who understands the 3PL business.
Freight Broker Insurance and BMC-84 Broker Bond: What We Need to Quote You
Freight broker insurance starts with the $75,000 BMC-84 broker bond, and FMCSA will not register a broker until a bond or trust fund is in effect. Shippers then expect contingent cargo, contingent auto liability and errors & omissions on top of it.
What we need to quote
- Your company name exactly as registered and your broker MC number (or the pending application)
- Owner names for the surety's credit review
- Years in business, plus financial statements if the surety asks for them
- The insurance requirements in your shipper contracts
- The date you want the bond and coverage to start
The full list, and why underwriters ask for each item: trucking insurance quote checklist.
Markets we quote directly
We write the BMC-84 bond required for FMCSA approval ourselves, then place contingent cargo, contingent auto liability and E&O in the same program: one broker, one renewal date. New brokers without operating history still get quoted.
How fast
Standard quotes take 24 to 48 hours once we have your complete information. A new broker's bond can need financial documentation before the surety approves it, so send it with the first request.
Quoted the same way: New authority truck insurance Β· Hot shot trucking insurance Β· Box truck insurance
7 Coverages Every Freight Broker Needs
Freight Broker Insurance Requirements, in Order
- BMC-84 bond ($75,000). The only coverage FMCSA requires, and it must be on file before your broker authority is granted. See our surety bond guide and BMC-84 vs BMC-85.
- Contingent cargo. Steps in when the carrier's primary cargo policy does not pay or is not enough. It is not first to pay, so the carrier you hire still needs enough primary cargo for the load. See contingent cargo insurance for freight brokers, what contingent cargo costs, contingent cargo insurance and contingent cargo vs motor truck cargo.
- General liability. Covers the brokerage itself: your office and your operations.
- Contingent auto, hired and non-owned auto. For the day a truck crash lawsuit names your brokerage. See contingent auto liability for freight brokers.
- Umbrella and higher limits. An umbrella is extra liability limit on top of your base policies. Added when a shipper contract asks for them. Larger shippers often set their own limits, so send us the insurance section of each contract before you sign it.
Why $100,000 of cargo is not enough: that limit has been the standard for decades while load values kept rising. If a load worth $120,000 is a total loss and the coverage stops at $100,000, the brokerage can be left paying the $20,000 difference. Ask the load value on every shipment, even from a regular customer. When the carrier's cargo claim is disputed, the Carmack Amendment sets what the carrier is and is not liable for.
What Changed for Freight Brokers in 2026: Montgomery and the C.H. Robinson Verdict
Updated November 4, 2026.
The Supreme Court ruling
On May 14, 2026, the Supreme Court decided Montgomery v. Caribe Transport II, LLC (No. 24-1238) in a unanimous opinion. A state claim that a broker carelessly hired the motor carrier in a crash is not blocked by federal law, because the FAAAA leaves states their power over motor vehicle safety. The federal preemption defense brokers used to raise no longer stops these claims. Our freight broker resource kit explains the ruling in more detail. For what brokers now require from the carriers they hire, see broker insurance requirements for carriers.
The C.H. Robinson verdict
On July 23, 2026, a Dallas County, Texas jury returned a $604 million verdict in Lipe v. Lupus Superior, LLC, a lawsuit over a fatal March 2021 crash. On October 16, 2026, the trial judge upheld it, with about $107 million of pre-judgment interest on top, as reported by FreightWaves. C.H. Robinson, the broker on the load, says the jury put 23 percent of the damages on it. Because the jury also found it vicariously liable for the carrier and its driver, it may be held liable for the full amount. The company says it will appeal immediately, so the result can still change.
Control matters, not only vetting
Why the broker was held liable is disputed. C.H. Robinson's own report says the jury found it negligently hired the carrier. Lawyers at Husch Blackwell (September 16, 2026) read the jury's answers differently. They say the jury rejected negligent selection and held the broker liable because the driver was a borrowed employee on a special mission, with GPS tracking of the driver and required check-ins under the broker-carrier contract as evidence. C.H. Robinson says it did not supervise, direct or control the driver. Either way, the point for any broker: the more you direct how a load is driven, the easier it is for a plaintiff to argue you controlled the driver.
Your $75,000 bond does not pay crash claims
The BMC-84 bond (or BMC-85 trust fund) pays shippers and motor carriers when a broker fails to carry out its contracts, such as unpaid freight bills. It is not liability insurance and does not answer an injury or crash lawsuit. That is the job of contingent auto liability.
Contingent auto vs. contingent cargo
- Contingent auto liability responds when a crash lawsuit names your brokerage and the carrier's own auto liability does not respond. Ask whether yours answers a negligent-selection or vicarious-liability claim, and at what limit. See contingent auto liability for freight brokers.
- Contingent cargo pays for lost or damaged freight when the carrier's cargo policy does not. It does not pay injury claims. See contingent cargo insurance.
What insurers are saying
Amwins, a wholesale insurance broker, wrote on July 27, 2026 that it expects premiums to rise sharply for contingent liability, cargo and excess coverage, deductibles to trend upward, and applications to ask more about vetting, safety checks and ongoing carrier monitoring.
What to do now
- Keep a dated record of every carrier check: authority, insurance, safety data, and why you picked that carrier.
- Read how your contingent auto policy answers a negligent-selection or vicarious-liability claim, and compare its limit to your largest shipper contract.
- Look at how much you direct the driver: tracking, check-in calls, routing. Talk to your own attorney about your contract terms; this page is not legal advice.
Who Needs Freight Broker Insurance?
- Licensed freight brokers with their own MC# (Broker Authority)
- Freight forwarders operating under FF authority
- 3PL companies arranging freight for shippers
- Digital freight marketplaces connecting shippers and carriers
- Freight agencies operating under a brokerage umbrella
- Dispatch services that arrange loads for motor carriers
Freight Broker Insurance FAQ
Does the BMC-84 bond cover a truck accident?
No. The $75,000 BMC-84 bond, or BMC-85 trust fund, pays shippers and motor carriers when a broker fails to carry out its contracts, such as unpaid freight charges. It is not liability insurance and does not pay injury or crash claims. Contingent auto liability is the broker policy for a crash lawsuit that names the brokerage.
What insurance responds to a negligent-selection claim after Montgomery?
Usually the broker's contingent auto liability policy, if its wording covers that kind of claim. Since the Supreme Court's May 14, 2026 ruling in Montgomery v. Caribe Transport II, federal law no longer blocks state claims that a broker carelessly hired a motor carrier. Check how your policy answers those claims and whether its limit matches your shipper contracts. Contingent cargo does not pay injury claims.
Is the C.H. Robinson $604 million verdict final?
Not yet. On October 16, 2026 the Dallas County trial judge upheld the July 23, 2026 jury verdict, with about $107 million of pre-judgment interest on top. In its October 30, 2026 quarterly report C.H. Robinson said it intends to appeal immediately, so the result can still change. Status as of November 4, 2026.
What insurance does a freight broker need, and in what order?
First the $75,000 BMC-84 bond, because FMCSA will not register your broker authority without it. Then contingent cargo, general liability, and contingent auto with hired and non-owned auto. Add an umbrella and higher limits when a shipper contract asks for them; most broker policy changes start with a shipper contract.
What is the difference between contingent cargo and primary cargo?
Primary cargo is the motor carrier's policy, and it pays first when freight is lost or damaged. Contingent cargo is the broker's policy, and it steps in after the carrier's policy, when that policy does not pay or is not enough. It is not first to pay, and what it covers depends on the policy form, so hire carriers whose own cargo limit covers the load value.
Is $100,000 of cargo coverage enough for a freight broker?
Often not. $100,000 has been the standard cargo limit for decades while the value of a typical load has kept rising, so many loads are now worth more. Ask the load value on every shipment, hire carriers whose primary cargo limit covers it, and set your contingent cargo limit to your highest-value loads.
What is the minimum insurance required to be a licensed freight broker?
For financial security, FMCSA requires one thing: a BMC-84 surety bond ($75,000) or BMC-85 trust fund ($75,000). However, shippers universally require additional coverage β contingent cargo (sized to your load values), contingent auto liability ($1M), errors & omissions ($1M), and general liability ($1M). A broker who carries only the BMC-84 will not get shipper contracts.
What is the difference between BMC-84 and BMC-85?
BMC-84 is a surety bond issued by a licensed surety company β you pay a premium (typically $900-$3,500/year) and the surety guarantees $75K to shippers and motor carriers for non-payment claims. BMC-85 is a trust fund where you deposit $75,000 in cash, irrevocable letters of credit, or Treasury bonds into a trust managed by a financial institution. Most brokers choose BMC-84 because the premium is far less than tying up $75K in cash.
How much does a BMC-84 surety bond cost?
BMC-84 premiums range from $900 to $3,500 per year depending on the broker's credit score, business age, and financials. New brokers with credit scores below 650 often pay the highest rates and may be required to post collateral. Brokers with 700+ credit and 2+ years in business typically pay $900-$1,500.
Do I need contingent cargo insurance if I only book loads with insured carriers?
Yes. Contingent cargo protects you when a carrier's primary policy fails β denial due to policy exclusions, lapse, or the carrier disputes coverage. Without contingent cargo, a denied carrier claim lands in your lap. This is one of the most common ways small brokers go out of business.
What is errors & omissions insurance for freight brokers?
E&O (also called professional liability) covers the broker's professional mistakes β booking a load with an uninsured carrier, misquoting rates that fail to deliver, losing paperwork that causes a claim denial, dispatching the wrong carrier, or failing to verify required insurance. E&O is critical because motor carrier and shipper contracts increasingly hold brokers liable for these errors.
How do freight broker insurance costs compare to motor carrier insurance?
Freight broker insurance totals typically $3,500-$8,500 per year: $1,000-$2,500 BMC-84 bond, $800-$1,500 contingent cargo, $800-$1,200 contingent auto, $1,200-$2,500 E&O, $600-$1,200 GL, $500-$1,000 cyber liability. Motor carriers running their own trucks pay 3-5x this amount ($12K-$18K per truck). Brokers arrange freight without owning trucks, so their exposure and premiums are lower.
Can Full Coverage help me get my freight broker authority?
Yes. We work with brokers from day one β writing the BMC-84 bond required for FMCSA approval, placing contingent cargo and auto liability, and adding E&O as soon as you start booking loads. New brokers without operating history still get competitive rates, though approval can require financial documentation for the BMC-84.
What happens if my BMC-84 bond is cancelled or lapses?
A bond can only be cancelled on 30 days' written notice to FMCSA, so you have that window to file a replacement. Your broker registration stays in effect only while a bond or trust fund does β if the cancellation takes effect with nothing on file, your authority goes with it. If claims draw the bond below $75,000, FMCSA can suspend your authority within 7 business days of notice. Never let your BMC-84 lapse β it is the single most important piece of coverage for a freight broker.
Where These Facts Come From
Sourced 7 of 7Key federal requirements on this page, linked to the law they come from.
- 1.A broker must keep a $75,000 surety bond (Form BMC-84) or trust fund (Form BMC-85) in effect, and FMCSA will not register a broker until it is. 49 CFR 387.307 Β· checked 2026-10-01
- 2.A trust fund may hold only cash, irrevocable letters of credit from a federally insured institution, or Treasury bonds, liquid within 7 calendar days. 49 CFR 387.307 Β· checked 2026-10-01
- 3.A broker bond can be cancelled only on 30 days' written notice to FMCSA (Form BMC-36), and broker registration stays in effect only while a bond or trust fund does. 49 CFR 387.307 Β· checked 2026-10-01
- 4.If claims draw a bond or trust fund below $75,000, FMCSA notifies the broker that its authority will be suspended within 7 business days unless it is restored. 49 CFR 387.307 Β· checked 2026-10-01
- 5.The bond or trust fund provides for payments to shippers or motor carriers if the broker fails to carry out its contracts, agreements or arrangements for the supplying of transportation. 49 CFR 387.307 Β· checked 2026-10-01
- 6.On May 14, 2026 a unanimous Supreme Court held that the FAAAA does not preempt a claim that a company negligently hired a motor carrier. The Act's motor vehicle safety exception saves it. Montgomery v. Caribe Transport II, LLC, No. 24-1238 (U.S. May 14, 2026) Β· checked 2026-11-04Docket: https://www.supremecourt.gov/docket/docketfiles/html/public/24-1238.html (judgment issued June 15, 2026).
- 7.C.H. Robinson reported a July 23, 2026 Dallas County jury verdict of $604 million that found it negligently hired the motor carrier and put 23 percent of the damages on it. Because the jury also found it vicariously liable, it may owe the full amount plus $107 million of pre-judgment interest, and it intends to appeal. C.H. Robinson Form 10-Q for the quarter ended Sept. 30, 2026 (filed Oct. 30, 2026) Β· checked 2026-11-04
Get Your Freight Broker Insurance Quote
We write complete broker programs: BMC-84 bond, contingent cargo, contingent auto liability, E&O, GL, and cyber β all through one broker, one renewal date.