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Profession

Professional liability insurance for Transportation & Logistics Advisory

Freight brokers, logistics consultants, and supply chain advisors.

Risks we see most

What actually goes wrong.

  • Routing and carrier selection errors
  • Customs and documentation mistakes
  • Service level failures

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Illustrative claim scenarios

How a policy responds.

Shipment delay

Documentation error stranded freight; shipper claimed spoilage and penalties.

Scenarios are illustrative examples of how this coverage is designed to respond — they are not actual client cases, and coverage always depends on policy terms and underwriting.

What E&O covers for Transportation & Logistics advisors

Freight brokers, logistics consultants, and supply-chain advisors face E&O claims when shipments and plans go wrong commercially: a load tendered to a carrier with lapsed authority or insurance, routing or mode advice that missed a delivery window and killed a contract, customs documentation errors, or network-design consulting that didn’t survive contact with reality. In brokered freight, when cargo is damaged and the motor carrier’s insurance fails, the shipper’s recovery theory lands on the broker’s selection and vetting process.

Broker/logistics E&O covers negligence in arranging transportation and advising on logistics; brokers commonly pair it with contingent cargo coverage (responding when the carrier’s cargo policy fails) and contingent auto liability — a stack shippers increasingly require in broker-carrier agreements alongside the FMCSA $75k surety bond. Consultants advising without touching freight carry lighter programs. Data-heavy logistics platforms add cyber liability; any drivers or warehouse staff of your own bring workers comp into play.

What logistics professionals typically pay

Pricing follows role and volume: pure advisory prices like consulting; live freight brokerage prices on load volume and the contingent coverages stacked with E&O.

Business profile Typical annual E&O premium range*
Supply-chain consultant, advisory only ~$800 – $2,000
Freight broker, small volume, E&O only ~$1,500 – $3,500
Freight broker with contingent cargo + auto ~$3,500 – $9,000
Logistics firm, $1M+ revenue advisory + brokerage ~$5,000 – $12,000+

*Illustrative market ranges based on typical small-business placements; your premium depends on revenue, limits, claims history, contracts, and carrier appetite. Not a quote or offer of coverage.

Frequently asked questions

What is contingent cargo insurance and do brokers need it?

It pays cargo losses when the motor carrier’s own cargo insurance should respond but doesn’t (lapsed, denied, insufficient). Brokers aren’t legally required to carry it, but shippers demand it in almost every broker agreement — practically, you can’t grow a brokerage without it.

A carrier we vetted had a major accident. Can we be sued?

Negligent-selection suits against brokers are an active and evolving area of litigation — plaintiffs argue the broker should have caught safety red flags. Documented vetting (authority, insurance, safety data at tender) plus broker E&O and contingent auto liability is the standard defense posture.

Does E&O cover customs and documentation errors?

Claims from documentation mistakes — commercial invoices, classifications where you provide that service, incoterm mix-ups — fall within logistics E&O when those services are disclosed. Customs brokerage itself is a licensed activity with its own E&O market; describe precisely what you do.

Do consultants who never touch freight still get claims?

Yes — network-design and procurement advice carries classic consulting exposure: the client implements your plan, results miss, and the fee dispute arrives with a negligence claim attached. Advisory-only logistics consultants price and insure like management consultants.

Related: consultants · cyber liability · workers comp.

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