Freight Broker Insurance Explained:
How Contingent Cargo Insurance Protects Your Business
Discover how contingent cargo insurance works within freight broker insurance and why US freight brokers rely on it to protect against denied cargo claims.
Operating as a freight broker involves managing risk across multiple carriers and shipments. Proper freight broker insurance is essential, and at the center of that protection is contingent cargo insurance.
Understanding Freight Broker Insurance
Freight broker insurance typically includes:
- Contingent cargo insurance
- General liability insurance
- Errors and omissions coverage
- Surety bonds
Each coverage plays a role, but contingent cargo insurance is particularly important when cargo claims arise.
👉 Read more about insurance requirements for freight brokers
How Contingent Cargo Insurance Works
When cargo is damaged, the carrier’s insurance is primary. However, if the carrier’s insurer denies the claim, contingent cargo insurance may step in — depending on policy terms and conditions.
Common reasons claims are denied include:
- Policy exclusions
- Lapsed carrier insurance
- Cargo type limitations
- Disputes over liability
For US freight brokers, this coverage provides peace of mind and financial protection.
Why Choose Proactive Financial Corp
Proactive Financial Corp, headquartered in Los Angeles, CA, works with top-rated insurance carriers to deliver reliable and affordable freight broker insurance. Their contingent cargo policies are designed to address real-world risks faced by brokers every day.
👉 Learn how we support freight brokers nationwide with competitive pricing and expert guidance.
Freight brokers who invest in proper insurance are better prepared for unexpected claims. Contingent cargo insurance is not just protection — it’s a smart business decision.