During the vetting process, you have undoubtedly checked the trucking insurance policy and coverage limits of the motor carriers that you’re contracting with as part of your due diligence. However, just because a motor carrier has insurance, does not mean that it is always sufficient for the cargo loads they’re carrying.

Currently, 90% or more of the Department of Transportation (DOT) Registered Motor Carrier force consists of small carriers with less than 10 units, or independent owner operators. These small motor carriers often have limited insurance choices available to them. Even more common, they may lack the financial resources available to acquire the levels of insurance needed to cover the value of their cargo.

Fixing this solution is not as easy as just asking your motor carrier to increase their Motor Truck Cargo Insurance policy level. Because the motor carrier’s insurance is typically the first line of defense in covering a lost or damaged cargo claim, motor carriers are often restricted by the amount of coverage that they are able to buy and at an amount they can afford.

The freight broker industry is evolving, but perhaps no time more rapidly in recent history than just the past few years. More freight brokers continue to enter the market as the need for domestic shipping options continues to increase. This means that shipping clients also have more options than even when it comes to contracting with a freight broker.

If one of your business goals is to attract new and larger shipping clients, Excess Motor Truck Cargo Insurance is one way to do that. It allows you to impress upon your potential shipping clients that a motor carrier’s coverage alone may not cover the full value of their cargo (one more reason to use a freight broker as an intermediary). Your additional insurance coverage will position you as a reputable protector of your shipping clients, who is proactive at mitigating risks.

When a freight broker provides for or arranges for the purchase of Excess Motor Truck Cargo Insurance, the broker demonstrates that they are willing to take all steps available to them to protect the interests of their shipping clients. That speaks volumes in terms of building client trust.

We’ve seen it happen before– a motor carrier has an accident with damage to cargo and suddenly the shipping client is threatening to end their relationship with the freight broker that facilitated the transaction. This happens most often when a shipper feels that their freight broker did not perform their due diligence in vetting the motor carrier and ensuring that the value of the cargo was sufficiently covered.

While it’s impossible to control motor carrier accidents from happening, how your company responds to the accident is what makes all the difference in preserving your reputation. The existence of the Excess Motor Truck Cargo Insurance coverage is a means of augmenting the broker’s shipper/customer relations, by diminishing or eliminating a source of friction that might otherwise exist if the motor carrier’s insurance proves inadequate in the event of a cargo loss.