Freight Broker Insurance Requirements Every Carrier Should Know

Quick Answer: Freight brokers in the US are federally required to carry a $75,000 surety bond (BMC-84) or trust fund (BMC-85) under FMCSA regulations. Most reputable brokers also carry contingent cargo liability and general liability. Carriers hauling for brokers must carry their own auto liability ($750K minimum) and cargo coverage ($100K minimum). Verify both sides before accepting a load.

A broker calls with a load. The rate looks good, the lane works. But do you know what happens if something goes wrong and either side has a coverage gap? You could be left holding the bill. Understanding freight broker insurance requirements goes both ways: what the broker must carry, and what you need to show them to get the load.

In this post, we cover what brokers are legally required to carry, what carriers must have to haul for them, and how to verify everything before you commit.

What Insurance Is a Freight Broker Required to Carry?

Every licensed freight broker in the United States must maintain a $75,000 surety bond or trust fund on file with the FMCSA. This minimum federal requirement under 49 CFR Part 387 has been in place since the MAP-21 Act raised the threshold from $10,000 in 2013. The bond protects carriers and shippers if a broker fails to pay for completed services.

That $75,000 figure sounds significant. In practice, it rarely covers the full exposure on a disputed load, especially for high-value freight. It’s the floor, not the ceiling.

Did you know? The FMCSA bond requirement jumped from $10,000 to $75,000 in 2013 after industry pressure to weed out undercapitalized brokers. Many brokers dropped out of the market rather than meet the new threshold. FMCSA Financial Requirements

Beyond the bond, brokers are not federally required to carry cargo insurance. That gap is where carriers get burned most often. The next section covers what YOU need to carry before a broker will even book you.

What Insurance Do Carriers Need to Haul for a Broker?

Before a broker hands you a load, they will check your insurance. The FMCSA sets a floor, and most brokers set their own minimums above it. Know both numbers before you call.

• Auto liability: The FMCSA minimum for non-hazardous freight is $750,000. Most brokers require $1 million. Hazmat loads typically require $5 million. If your policy sits at the federal floor, some brokers will not book you.
• Motor truck cargo (MTC): Most brokers require a minimum of $100,000 in cargo coverage. High-value loads (electronics, pharmaceuticals, luxury goods) often require more. Check the load requirements before you accept.
• Insurance company rating: Many brokers only accept coverage from carriers rated A or better by AM Best. A policy from a non-rated or B-rated insurer can get you rejected even if the limits are right.

Keep a current COI (Certificate of Insurance) ready to send on request. Any broker worth working with will ask for it. Have it updated and on hand before you start calling on new lanes.

Additional Coverage Worth Asking About

The surety bond is the only federally mandated broker coverage. Everything else is voluntary. That said, the brokers who carry the following coverage are significantly lower risk to haul for.

• Contingent cargo liability: Kicks in when a carrier’s primary cargo coverage is disputed, denied, or insufficient. Reputable brokers carry $100,000 per occurrence minimum. If a broker has none, you absorb more risk than the rate reflects.
• General liability: Covers third-party bodily injury and property damage from brokerage operations. Most established brokerages carry $1M per occurrence. Not required, but standard among legitimate operations.
• Errors and omissions (E&O): Covers the broker for mistakes in arranging transportation. Less common but worth noting on high-value or time-sensitive freight. Ask if the broker carries it on specialty loads.

Pro Tip: Ask for a COI from the broker before hauling for the first time. Any legitimate broker will send it within the hour. Hesitation or refusal tells you something.

The type of freight matters here too. Refrigerated loads, hazmat, and high-value electronics all carry elevated risk. Make sure the broker’s coverage limits actually match the exposure before you’re 400 miles from home with a problem.

How to Verify a Broker’s Insurance Before You Haul

Verification takes three steps and a few minutes. Do all three before accepting a load from anyone new.

1. Check FMCSA SAFER: Go to safer.fmcsa.dot.gov, enter the broker’s MC number, and confirm their operating authority is active and their bond is current. Active authority with a current bond means they’ve met the federal minimum.
2. Request a Certificate of Insurance: Ask the broker for a COI showing their cargo and general liability coverage. Check the policy limits, the issuing insurer, and the expiration date. A COI expired six months ago tells you a lot about how they run their business.
3. Check their ratings: Insurance compliance is one data point. Payment history and carrier reviews are just as important. Freight Checkers lets carriers rate and review brokers they’ve hauled for, giving you ground-level insight that a bond filing won’t show.

If a broker passes all three checks, you have a solid baseline. None of this is a guarantee, but it puts the risk in your favor before you commit to the load.

For Canadian lanes, provincial regulations apply alongside FMCSA cross-border requirements. Our Canadian freight broker rating service covers broker data for those lanes.

Check the Broker, Not Just the Rate

A great-looking rate means nothing if the broker has a lapsed bond, no cargo coverage, and a string of unpaid carrier complaints. Freight Checkers was built to give motor carriers in the US and Canada a way to research brokers before they commit. Call us at 662-932-3775 or reach out here to learn more about what our rating platform covers.

Verify the insurance. Check the ratings. Then take the load.