Because of how a freight forwarder operates their business a freight forwarder will be required to have the following insurance on file with the FMCSA.
- Minimum $750,000 Auto Policy (typically many opt for a $1,000,000 coverage, but depends on if they plan to operate trucks, and if so - what they plan to haul)
- Those Freight Forwarders who do not operate the truck side - will want to ensure they work with the FMCSA to file for an exemption to this requirement.
- $75,000 Broker Bond/Trust fund
Based on the company - it's usually recommended that a freight forwarder explore other coverages to help ensure their company is protected in the event there is an oversight or accident. This typically comes in the form of a Cargo Policy or Contingent Cargo based on how the freight forwarding company intends to operate.