How much is insurance for a freight broker?

Freight broker businesses pay an average of $146 per month, or $1,752 annually, for general liability insurance.

Also called public liability insurance, general liability insurance covers common third-party lawsuits related to bodily injuries and property damage. For example, a client could trip over a box in your office and suffer an injury, or break their smartphone in the fall.

This policy also helps pay for legal fees if someone sues your business over an advertising injury, such as copyright infringement or defamation. You might need general liability insurance to sign a commercial lease, get a business loan, or work with certain shippers.

Below is the average general liability policy for freight brokers who buy from Insureon:

Insurance premium: $146 per month
Policy limits: $1 million per occurrence; $2 million aggregate
Deductible: $1,000

The per-occurrence limit is the maximum your insurance company will pay for a single covered incident. The aggregate limit is the most the insurer will pay for all covered claims during the policy period, typically one year.

Insurance companies consider several factors when calculating the cost of your general liability policy. That includes the coverage limits and deductible you choose, the freight brokerage services you provide, your business income, your policy's exclusions, and insurance options such as an additional insured.

You can save money on general liability coverage by buying it together with commercial property insurance in a business owner's policy (BOP). This cost-saving bundle protects against both common third-party lawsuits and damage to your office and business property.

For freight brokerage businesses and other trucking companies, the average cost of workers’ compensation insurance is $650 per month, or $7,795 annually.

This type of insurance covers medical bills related to employee injuries, such as a worker who slips in a spill in the breakroom. It also provides disability benefits while an employee is disabled or temporarily unable to work.

Most workers' comp policies include employer's liability insurance to protect against lawsuits from injured workers, though they give up their right to sue once they accept benefits.

Businesses with employees typically must purchase workers' comp to comply with state laws and avoid penalties. For example, businesses in California and New York must carry workers' comp if they have one or more full-time or part-time employees. Florida businesses need coverage when they have four or more employees, and coverage is optional in Texas.

Since health insurance plans can deny claims for injuries related to your job, workers' comp coverage is also recommended for sole proprietors as a financial safety net and for peace of mind.

The cost of workers' comp depends on several factors, primarily the number of employees you have and their occupational risks. You can save money on workers' comp coverage by classifying your employees correctly and focusing on workplace safety to avoid injuries and subsequent claims.