What Is Contingent Cargo Insurance and Why Every Freight Broker Needs It
Protect your brokerage from denied cargo claims and financial loss
Contingent cargo insurance is one of the most important forms of protection for freight brokers operating in today’s complex logistics environment. While motor carriers are required to carry cargo insurance, claims are often denied due to exclusions, lapsed policies, or insufficient limits. This is where contingent cargo insurance becomes essential.
What Is Contingent Cargo Insurance?
Contingent cargo insurance is a specialized form of freight broker insurance designed to protect brokers when a carrier’s cargo policy fails to respond to a loss. Although freight brokers are not typically the party transporting goods, shippers frequently look to brokers when cargo is damaged, lost, or stolen.
This coverage acts as a financial safety net, helping brokers manage unexpected claims and avoid costly disputes.
Why Freight Brokers Need This Coverage
- Legal expenses from cargo claims
- Out-of-pocket settlements
- Damaged relationships with shippers
- Lost business opportunities
For US freight brokers, having this coverage is often a requirement to work with larger shippers.
How Proactive Financial Corp Helps
Based in Los Angeles, CA, Proactive Financial Corp specializes in affordable contingent cargo insurance tailored specifically for freight brokers nationwide. Their team works closely with brokers to ensure coverage aligns with shipper contracts and industry expectations.
Contingent cargo insurance isn’t just about compliance — it’s about protecting your reputation and financial stability. Freight brokers who invest in the right coverage position themselves for long-term success in the logistics industry.