As the line between freight brokers and motor carriers continues to blur, the issue of freight broker liability is becoming increasingly important for trucking company owners and general managers. When something goes wrong—be it a cargo claim, an accident involving a subcontracted driver, or a dispute over load terms—courts and claimants are often quick to involve every party in the transportation chain. That includes brokers and the motor carriers who partner with them. Understanding the legal risks associated with freight brokerage is critical to protecting your fleet and avoiding expensive litigation.

One key area of concern is vicarious liability, where a motor carrier or freight broker may be held legally responsible for the actions of a driver or subcontractor, even if that individual is not directly employed by them. This issue becomes even more complicated when brokers are seen as exercising too much control over how freight is handled—such as setting tight delivery schedules or specifying equipment types. If a crash occurs, plaintiffs may argue that the broker acted as a de facto employer, opening the door to multimillion-dollar claims against both broker and carrier.

To mitigate these risks, it’s essential that trucking companies evaluate their broker-carrier agreements carefully. Ensure the contracts clearly define roles, responsibilities, and liability limits. Avoid language that implies the broker is directing carrier operations, and make sure brokers are properly licensed and carry sufficient freight broker liability insurance. General managers should also maintain meticulous records of communication, load assignments, and safety compliance to build a strong defense in the event of a dispute.

Finally, the best way to manage freight broker liability is to maintain high standards in carrier selection and compliance monitoring. If you work as both a carrier and a broker (or partner closely with one), ensure you’re vetting subcontractors with the same diligence you use for your own drivers—checking insurance, safety ratings, and DOT compliance. Implement risk management strategies such as MVR monitoring, electronic documentation, and automated recordkeeping. By actively managing relationships and legal exposure, trucking companies can reduce their vulnerability and keep control of their reputations and bottom lines.