Do you Know about freight brokers insurance?

Contingent Cargo Insurance, I've heard of it, but what is it? Contingent Cargo Insurance is an insurance policy usually carried by Freight Brokerages as a customer-based protection plan. Why does a brokerage need it since the Carrier has to have insurance? When would a brokerage need Contingent Cargo Insurance?

First of all, there is no law that requires a Freight Brokerage to carry contingent cargo insurance. They DO NOT have to carry it. But, most shippers won't deal with a brokerage that doesn't have it. Why? Most shippers feel they can sue the broker or collect from the brokers Contingent Cargo Insurance if a load is hijacked or once delivered, is damaged or missing pieces. But, this is not true. That falls under the carriers insurance. A Brokerage does not personally load the freight, count it, inspect it, nor haul it.

And a lot of times the carrier does none of this BUT haul it. Yet the carrier takes possession of the load and is therefore responsible for it. If it is hijacked, damaged, or is missing pieces, the carrier and/or receiver goes back to the shipper, NOT to the Brokerage. Then the carrier and shipper work it out or the carrier, shipper and receiver work it out. The Brokerage is truly the intermediary, but, YES, there are times when he/she can be held responsible.