Question 1

What is a common misconception about Professional Liability (E&O) for Freight Brokers?

Accepted Answer

Brokers think 'we just connect shippers and carriers.' Plaintiffs' attorneys routinely allege negligent carrier selection, requiring brokers to demonstrate due diligence.

Question 2

What happens if freight brokers don't have Professional Liability (E&O)?

Accepted Answer

Booked carrier loses a $90K shipment; broker is sued for negligent selection. Contingent cargo + broker E&O pays defense and settlement.

Question 3

What is a common misconception about General Liability for Freight Brokers?

Accepted Answer

Broker offices have low premises exposure but contracts require GL.

Question 4

What happens if freight brokers don't have General Liability?

Accepted Answer

Visitor trips at office — $7K. GL pays.

Question 5

What is a common misconception about Cyber Liability for Freight Brokers?

Accepted Answer

Brokers handle massive wire transfers daily — BEC scams targeting freight brokers can siphon hundreds of thousands.

Question 6

What happens if freight brokers don't have Cyber Liability?

Accepted Answer

BEC attack reroutes $140K in carrier payments to fraudster's account. Funds-transfer fraud coverage pays.

Question 7

What is a common misconception about Employment Practices Liability (EPLI) for Freight Brokers?

Accepted Answer

Mid-size brokers face routine employment exposure.

Question 8

What happens if freight brokers don't have Employment Practices Liability (EPLI)?

Accepted Answer

Terminated dispatcher alleges discrimination — $40K. EPLI pays.

Question 9

What is a common misconception about Directors & Officers (D&O) for Freight Brokers?

Accepted Answer

PE-backed brokers face investor disputes.

Question 10

What happens if freight brokers don't have Directors & Officers (D&O)?

Accepted Answer

Investor sues principals — D&O defends.

Freight Brokers Insurance Coverage Guide | RISKX