This document outlines the minimum insurance coverage requirements for all motor carriers ("Carrier") operating under the Broker–Carrier Agreement. Carrier must maintain all required insurance policies throughout the term of the Agreement and during the performance of any transportation services. Failure to maintain required coverage constitutes a material breach and grounds for immediate termination.
Combined single limit for bodily injury and property damage. Must cover all owned, hired, leased, and non-owned vehicles used in the performance of transportation services under this Agreement. Policy must comply with 49 CFR § 387 minimum financial responsibility requirements.
All-risk coverage for physical loss or damage to cargo from the time freight is received by Carrier until delivery to the consignee. Coverage must include theft, pilferage, and non-delivery. Policy must cover loading and unloading operations. Deductible shall not exceed $2,500 per occurrence.
General liability coverage for third-party bodily injury and property damage claims arising from Carrier's business operations, including premises liability and products/completed operations.
Workers' compensation insurance as required by the laws of each state in which Carrier's employees perform services. Employer's liability coverage of not less than $500,000 per accident / $500,000 disease per employee / $500,000 disease policy limit.
Carrier transporting temperature-sensitive or refrigerated freight must maintain reefer breakdown or mechanical breakdown endorsement adequate to cover spoilage, deterioration, or damage resulting from refrigeration unit failure. Coverage must apply from pickup to delivery, including all transit time.
| Coverage Type | Minimum Limit | Required |
|---|---|---|
| Commercial Auto Liability | $1,000,000 per occurrence | All Carriers |
| Motor Truck Cargo | $100,000 per occurrence | All Carriers |
| General Liability | $1,000,000 per occurrence | All Carriers |
| Workers' Compensation | Statutory limits | All Carriers with employees |
| Reefer Breakdown | Adequate coverage | Reefer loads only |
| Umbrella / Excess Liability | Varies by commodity | May be required for high-value freight |
3.1. Carrier must provide Broker with a Certificate of Insurance (COI) evidencing all required coverage prior to transporting any freight for Broker. The COI must be current, issued by the insurer or an authorized agent, and accurately reflect all coverage requirements.
3.2. The Certificate of Insurance must include:
3.3. Carrier must provide updated COIs upon each policy renewal or within five (5) business days of any change in coverage. Failure to provide updated documentation may result in suspension of Carrier's account.
4.1. Carrier warrants that all required insurance policies will remain in full force and effect at all times during the term of the Broker–Carrier Agreement and during the performance of any transportation services.
4.2. Insurance must be active and valid for every shipment from the moment Carrier takes possession of the freight until final delivery. There shall be no gap, lapse, or interruption in coverage.
4.3. If Carrier's insurance is cancelled, lapses, or is materially reduced at any time:
CRITICAL WARNING: Operating without valid insurance is a violation of federal law (49 CFR § 387) and this Agreement. Carrier will be held personally liable for all claims, damages, and legal costs arising from transportation performed without valid insurance coverage. Broker will immediately deactivate Carrier's account upon discovery of any insurance lapse.
5.1. All insurance policies must be issued by insurance companies that are:
5.2. Broker reserves the right to reject any insurance certificate issued by an insurer that does not meet these requirements or that Broker reasonably believes is not financially sound.
6.1. For shipments involving high-value commodities (electronics, pharmaceuticals, alcohol, luxury goods, or any load valued above $100,000), Broker may require Carrier to maintain increased cargo insurance limits. The required limits will be specified in the load confirmation.
6.2. For hazardous materials shipments, Carrier must maintain insurance coverage meeting the minimum levels prescribed by 49 CFR § 387.9, which may require higher limits than the standard minimums.
6.3. Carrier shall not accept any shipment for which its insurance coverage is inadequate. If Carrier accepts a load and its coverage is later found to be insufficient, Carrier shall be fully liable for any uncovered claims.
7.1. In the event of a cargo claim, Carrier's cargo insurance shall be the primary source of recovery. Carrier shall promptly file a claim with its insurer and cooperate fully with the claims investigation.
7.2. Carrier's insurance coverage does not limit or reduce Carrier's liability under the Carmack Amendment or the Broker–Carrier Agreement. Carrier remains fully liable for all cargo loss and damage regardless of insurance coverage limits or exclusions.
7.3. Carrier shall not settle any insurance claim related to freight transported for Broker without Broker's prior written consent.
8.1. Broker reserves the right to verify Carrier's insurance status at any time through:
8.2. Carrier consents to Broker's verification of its insurance coverage and authorizes its insurer to provide Broker with coverage information upon request.
8.3. If Broker discovers that Carrier's insurance is insufficient, lapsed, or non-compliant, Broker may immediately suspend Carrier's access to the Carrier Portal and all active load assignments.
By registering on the Carrier Portal, Carrier certifies that it currently maintains all required insurance coverage as outlined in this document, and that it will maintain such coverage continuously throughout the carrier relationship. Carrier agrees to provide Certificates of Insurance upon request and to notify Broker immediately of any changes to its insurance coverage.