Freight brokers have long been considered intermediaries in the transportation chain, more akin to travel agents than carriers. But in recent years, that role has shifted under the weight of litigation trends and the surge of nuclear verdicts that have redefined liability across the industry.
Marsh, a leading insurance broker and risk advisor, is stepping in to provide freight brokers with a tailored insurance solution designed to address the heightened exposure they now face with BrokerSafe.
For decades, freight brokers operated under the assumption that liability largely rested with carriers, with insurance serving as a backstop for operational risks. That changed dramatically following the 2020 Miller v. C.H. Robinson case, which opened the door for plaintiffs to pursue brokers directly in negligence claims.
Janelle Griffith, North American logistics practice leader at Marsh said in an interview with FreightWaves. “Historically, brokers weren’t responsible for anything outside of F4A safety. But after 2020, brokers were being pulled into litigation, and nuclear verdicts automatically started to rise.”
These verdicts, often exceeding $10 million, have upended traditional insurance practices and made brokers prime targets for plaintiff attorneys who view them as the deeper pockets in the supply chain. Griffith said. “Exposure in the past was minimal. Now it’s expanded, negligent hiring, carrier vetting, and other gray areas are being pushed into courtrooms.”
The result has been a wave of insurance challenges. Many insurance carriers in the market either reduced their appetite for liability policies or withdrew altogether, just as brokers were becoming more exposed.
Marsh recognized that gap and developed BrokerSafe as a domestic insurance facility to give brokers coverage that reflects their true level of exposure. Unlike many policies traditionally written out of London, BrokerSafe’s structure is rooted in U.S. underwriting, providing brokers access to markets that had previously been reluctant to participate.
At its core, BrokerSafe is not about eliminating risk but about giving brokers tools to manage it. “What we do doesn’t make the exposure change,” Griffith said. “It’s how you protect yourself and mitigate against the exposure. We looked at the landscape, saw that brokers needed coverage, and brought together technology and relationships to create an insurance facility where underwriters are well-versed in freight brokerage.”
Technology plays a central role in BrokerSafe’s value proposition. By leveraging data transparency, Marsh has been able to help underwriters understand the nuances of broker operations. That visibility builds confidence and enables more comprehensive coverage.
“The insurance industry didn’t understand freight brokers,” Griffith explained. “What BrokerSafe does is show the true exposure through data. That allows underwriters to get comfortable and expand coverage. Technology was the real driver behind it.”
Auto liability coverage is particularly critical. When a carrier is involved in a crash, plaintiffs often pursue both the carrier and the broker to maximize recovery. Griffith stressed the distinction. “Brokers are dealing with it on two fronts: nuclear verdicts on the auto liability side and the rising costs of cargo theft on the other. Auto liability coverage for brokers is like truckers’ liability, but it recognizes the reality that brokers are now pulled into these cases too.”
Still, Marsh emphasizes that BrokerSafe is not a catch-all solution. Rather, it is one component of a broader risk management strategy.
Marsh and BrokerSafe advise brokers to document carrier vetting processes, invest in compliance systems, and adopt technology that enhances transparency. “Our primary goal is to advise clients on how to mitigate exposure,” Griffith said. “Risk management is different than insurance. Insurance covers the black and white, but we also help with the gray.”
As the freight brokerage sector grapples with razor-thin margins and increasing legal scrutiny, insurance is emerging as the silent support for the supply chain. BrokerSafe’s launch signals an acknowledgment of the evolving risks brokers face and an effort to stabilize coverage at a time when it is most needed.
“We’ve cracked the code,” Griffith added. “By meeting brokers where they are, bringing in technology, and creating bespoke underwriting, we’ve been able to give them the protection they need to keep the supply chain moving.”
