Contingent Cargo Coverage Can Help Fill Insurance Gaps


Whatever your business, insurance is a must-have and there are plenty of options available for companies that operate in a specialized field or industry. If you are a freight broker, you have different coverage needs than retailers, medical practitioners or even service industry professionals. Along with general liability, car and property insurance, freight brokers should consider contingent cargo coverage.

Cargo Insurance Coverage Holes

As a freight broker, your job is to find reliable transportation carriers for shippers such as product manufacturers and coordinate all their shipping needs. You work only with the best and you know they have cargo insurance to cover losses and damages. What you don’t know is where the holes are in their policies. Some of the events not covered by a general cargo policy are worker strikes, terrorist acts, riots and “acts of God” such as hurricanes or tsunamis.

Protect Your Business

Should one of these exclusive events cause damage or loss of a shipper’s goods, the carrier’s insurance may indeed deny a claim made by the shipper and that makes you next on the list. Freight brokers are not required to have contingent cargo coverage, but you should consider it anyway. It may make a difference to the shipper when choosing a broker to work with and it can help protect you in the event the carrier’s cargo insurance denies a claim.