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In order to obtain a license to broker freight, a freight brokerage must purchase a surety bond or trust agreement with the Federal Motor Carrier Safety Administration (FMCSA). [3] Prior to June 2012 when the bill was signed by President Obama, the surety bond coverage required to hold a broker license was $10,000.
the freight broker bond increased from $10,000 to $75,000 [1] freight forwarders must also meet the $75k requirement [2] The freight broker bond increase took effect on October 1, 2013. Many freight brokers were against this change because they expected they would not be able to meet the new requirement.
Co-brokering is a legal practice used to ensure there is an available truck to transport freight. A 4PL may use a 3PL broker to match loads with trucks, with a shippers knowledge. The primary broker will take a lesser amount of the fee and the secondary broker will book the load for transport receiving a larger share of the same fee. [7]
General liability insurance protects you against financial losses that may result from bodily injuries or property damage that occur due to your business. For example, if a client is injured on ...
It turns out that $1,000,000 isn't enough for some plaintiff's attorneys. Plaintiffs' attorneys have been suing freight brokers for years over alleged negligent selection and vicarious liability ...
A broker generally holds contracts with many insurers, thereby allowing the broker to "shop" the market for the best rates and coverage possible. Insurance may also be purchased through an agent. A tied agent, working exclusively with one insurer, represents the insurance company from whom the policyholder buys (while a free agent sells ...
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