The insurance industry is tough; many hardworking agents targeting the same clients, offering products with little room for negotiation on price or coverage. Differentiation from your competition can be a challenge, but a lack of differentiation will slow your business growth. Your available time is already at a premium, making it harder to search for under-served markets or learn new insurance products.

What if you were given the tools to expand your insurance offerings into a market segment that is expected to grow over 36% in the next few years, but has few agents in the game? If you are already familiar with motor carrier insurance, now is the time to explore insurance for freight brokers.

The freight broker business model is different from motor carriers, and with that comes a need for comprehensive insurance protection covering a unique set of potential liabilities. There are three main trends to consider in the current freight broker business:

• The US Freight Brokerage market is growing exponentially year over year.
• Nearly 1,000 new freight brokers are entering the market each year in response to increased demand for freight movement.
• Freight brokers are now being pulled into litigation for transport errors and accidents that previously they may have been exempt from.

This means that even the most experienced freight brokers may not be carrying the insurance coverage that the current market demands, exposing them to limitless liability.

Adding freight broker insurance to your portfolio will allow you to tap into a growing market with unmet insurance needs. And because we know you’re tight on time, and because we have worked with thousands of insurance brokers and understand your business, we’ve prepared a playbook to get you started.

Step 1: Initiate the Client Consultation

With any new business partnership, there is a certain amount of data collecting you will need to do to allow you to better serve your freight broker clients and find the insurance policy that is most appropriate for them.

Asking the following questions

Step 2: Add Value to the Relationship

Freight brokers often view insurance as just another business expense that they are required to have. Here is your chance to demonstrate how they can leverage their insurance coverage to add value to their business and differentiate them in a market where such differentiation is challenging.

Begin by asking your freight broker client, “What are your business goals?”

This is an important piece of the conversation and shows that you are interested and invested in their success. Regardless of the freight broker’s business size, most will say things like, “grow revenue” and “grow customer base.” Discovering their business goals will help you build your client relationship and show that you can be a partner in helping them achieve their desired growth.

It is likely that they have never considered insurance as a tool to help them achieve their goals. This becomes your opportunity to address your client’s pain points for growth and educate them on how your insurance partnership can help them overcome these obstacles.

Step 3: Identify Opportunities for Growth

Most small freight brokers don’t carry anything more than the required insurance amounts because they incorrectly assume three things:

These assumptions, however, can create a cap on the types and size of customers that small freight brokers are able to serve, as most larger freight clients require a certain level of insurance to compete. Through understanding freight broker insurance, you can educate them as to how certain insurance products will allow them to compete with larger brokers and provide an increased level of confidence to the end freight client knowing that their products are protected.

Your larger freight brokers have most likely been in the game for a while and may have settled in their business model. Risk management is key in today’s market. Established freight brokers are finding themselves caught off-guard with transportation lawsuits now including them as a liable party, rather than just the freight carriers. This results in experienced freight brokerage companies being faced with litigation levels that threaten to put them in bankruptcy.

Providing freight broker insurance tools to these seasoned companies will allow them to stay competitive and protected in a rapidly-changing industry. You, as their insurance agent, can share important information in freight trends that can keep them relevant with their clients.

New Opportunities Ahead

In an industry that is highly commoditized, it’s important to seek ways to differentiate your business. One of the best ways to do that is through client service. Staying on top of industry trends and educating your clients on how to make the most of their insurance purchases will help you stand out and build loyalty. When you educate your freight broker clients, they, in turn, can educate their customers and build their own reputation.

Partner with agent-focused insurance providers, like Logistiq, who will provide you with the tools to help you maximize your efficiency and value. The rules of the insurance game may be constantly changing, but we’re here to help you succeed.

How To Move Forward