Freight brokers and logistics companies don’t drive the trucks, but they can still be pulled into a claim when a load is damaged or a carrier is in a wreck. Transportation Risk Specialists helps brokers and logistics operations put the right coverage in place with A-rated carriers and understand their FMCSA financial responsibility requirements.
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FMCSA financial responsibility for brokers
Under FMCSA’s rules, property brokers and freight forwarders must have $75,000 of financial security on file, using:
- BMC-84 — a surety bond, or
- BMC-85 — a trust fund agreement
Freight forwarders of household goods also need $5,000 of cargo coverage on file. FMCSA’s updated broker and freight forwarder financial responsibility rule took effect January 16, 2026. If your bond or trust was set up before then, it’s worth reviewing how the changes apply to you.
The BMC-84 or BMC-85 protects carriers and shippers if a broker doesn’t pay. It isn’t insurance for the broker. The coverages below are what protect your business.
Coverage brokers and logistics companies commonly carry
Contingent auto liability
Can respond if your business is named in a lawsuit arising from a crash involving a motor carrier you hired, typically when the carrier’s own liability coverage doesn’t respond. Many shippers ask brokers to carry it.
Contingent cargo
Can respond when freight you arranged is damaged or lost and the motor carrier’s cargo policy doesn’t pay, for example because of an exclusion or lapse. Read the conditions carefully; many contingent cargo policies require the broker to follow specific carrier-vetting procedures.
General liability
Covers premises and operations exposures such as bodily injury or property damage at your office or facility, and is often required by shipper contracts.
Errors and omissions (professional liability)
Can cover claims that a mistake in your services caused a financial loss, such as booking errors or misrouted freight, depending on the policy.
Other coverage to consider
- Workers’ compensation for employees, following your state’s rules
- Cyber liability, since brokers handle payment information and are frequent targets of fraud
- Warehouse legal liability, if you store freight
- Primary auto liability, cargo, and physical damage, if you also operate trucks under your own motor carrier authority
Questions we’ll ask
- Your MC number and type of authority (broker, freight forwarder, motor carrier, or more than one)
- Annual gross revenue and the commodities you arrange
- How you vet carriers before giving them a load
- Your standard broker-carrier and shipper agreements
- Any prior claims
Freight broker insurance FAQ
Is my BMC-84 bond the same as insurance?
No. The BMC-84 surety bond or BMC-85 trust is financial security FMCSA requires so carriers and shippers can be paid if a broker defaults. It doesn’t protect the broker from lawsuits or cargo claims.
Do I need contingent auto liability if all my carriers have insurance?
Carriers’ policies can lapse, have exclusions, or carry limits below a claim’s value, and plaintiffs often name the broker too. Contingent auto liability is designed for situations where the carrier’s coverage doesn’t respond. Many shipper contracts require it.
What changed with the January 16, 2026 rule?
FMCSA’s broker and freight forwarder financial responsibility rule changed requirements for brokers, freight forwarders, and the companies that provide their financial security. We’ll review your current bond or trust against the current rule with you.
Broker or logistics company? Call 205-221-5466 or start your quote.
Source for broker and freight forwarder requirements: FMCSA, “Insurance Filing Requirements.” Coverage descriptions are general; actual coverage depends on the policy issued.