How Much Does Freight Broker Insurance Cost? 2025 Rates

Freight brokers in the U.S. generally spend between $1,800 and $2,400 each year on business insurance. That works out to about $150 to $200 per month.

What Drives Premiums

Several factors influence how much coverage will cost:

• Business size – Solo brokers usually pay less than larger firms with multiple employees and higher client volume.
• Annual revenue – Higher earnings often mean larger contracts and greater liability exposure.
• Coverage type – Adding specialized policies, such as errors and omissions or cyber liability, increases costs.
• Location – Operating in busy cities or high-risk regions tends to raise premiums compared to quieter areas.
• Claims history – A clean record helps keep costs down, while past claims may raise rates.

Why It Matters

Understanding these cost drivers helps freight brokers budget effectively and choose coverage that matches their risks. With the right plan, they can protect their business without overspending.

How Much Does Freight Broker Insurance Cost?

On average, freight brokers spend between $1,800 and $2,400 annually on business insurance. That equals about $150 to $200 per month. These figures are only estimates, and the actual premium depends on the details of your brokerage.

Why Costs Differ

No two freight brokerages are alike. A solo broker working from home with no employees will usually pay far less than a larger company with staff, office space, and a fleet of trucks.

Key Cost Drivers

Several factors influence how much you’ll pay for coverage:

• Claims history – Filing past claims often raises premiums, while a clean record can lower them.
• Property size and value – Larger offices or expensive assets increase commercial property insurance costs.
• Number of employees – More staff means greater liability exposure and higher workers’ comp expenses.
• Business interruption and add-ons – Extra coverage options add to the total bill.

Loads, Distance, And Location

The type of cargo you handle, how far shipments travel, and where your business operates also matter. Brokers dealing with hazardous or high-value freight, or those working in high-risk regions, often face higher premiums compared to those handling lower-risk loads in safer areas.

Why This Matters

Understanding these variables helps freight brokers estimate insurance needs more accurately and budget for the real costs of protecting their business. With the right coverage, you can safeguard your operations without overspending.

Average Freight Broker Insurance Costs For Coverage Types

When it comes to protecting your freight broker business, different types of insurance cover different risks. Understanding the average cost, coverage details, and what influences pricing for each policy type can help you build a more effective insurance plan. Here’s a closer look at the major coverages most freight brokers need.

General liability insurance: $150 per month

Workers’ compensation insurance: $645 per month

Commercial auto insurance: $840 per month

General Liability Insurance

The average cost of general liability insurance for a freight broker is about $150 per month.

General liability covers third-party bodily injury, property damage, and advertising injuries. For example, if a client visits your freight broker office and trips over a loose rug, injuring themselves, this policy can help cover their medical bills and any legal costs if they decide to sue.

Typical policy limits are $1 million per occurrence and $2 million aggregate.

Factors that influence the cost include the business size, location, the freight brokerage services you provide, previous claims history, and insurance options such as an additional insured.

Average annual premiums by state:

Note: These estimates are based on average national General Liability Insurance premiums for freight broker businesses, adjusted slightly for state-level differences. Actual premiums will vary depending on business size, services offered, claims history, and insurer underwriting practices.

Workers’ Compensation Insurance

The average cost of workers’ compensation insurance for a freight broker is around $645 per month.

Workers’ comp covers medical bills, rehabilitation, and lost wages for employees injured on the job. For example, if one of your dispatchers injures their back while lifting heavy boxes in the office, workers’ compensation would help pay for their treatment and part of their income while they recover.

Policy limits are regulated by each state, but typically include medical costs and a percentage of lost wages without a set cap.

Premiums are influenced by the size of your payroll, the type of work employees perform, your claims history, and any implemented safety programs.

Average annual premiums by state:

Note: These estimates are based on average national Workers’ Compensation premiums for freight broker businesses, adjusted slightly for state-level differences. Actual premiums will vary depending on payroll size, number of employees, claims history, and insurer underwriting practices.

Commercial Auto Insurance

The average cost of commercial auto insurance for a freight broker is about $840 per month.

Commercial auto insurance covers vehicles owned or used by the business for accidents, theft, vandalism, or damage. For example, if a delivery driver causes an accident while bringing food to a customer, this policy would cover the damages and any third-party claims.

Factors influencing the cost include the number and type of vehicles, how often they are used, the driving records of employees, and whether you add endorsements like hired and non-owned auto insurance (HNOA) for employee-owned vehicles.

Average annual premiums by state:

Note: These estimates are based on average national Commercial Auto Insurance premiums for freight broker businesses, adjusted slightly for state-level differences. Actual premiums will vary depending on the number of vehicles, driving records, coverage limits, and insurer underwriting practices.

Freight Broker Business Insurance Costs By Provider

Freight broker business insurance costs will vary greatly depending on the insurance carrier. Use the table below to find average costs across different providers.

Note: These estimates are based on average small business insurance costs for freight brokers, typically including general liability, contingent cargo coverage, and professional liability (errors & omissions). Actual premiums will vary depending on factors such as location, size of operations, annual revenue, claims history, and coverage limits.

What Factors Impact Your Freight Broker Insurance Costs?

Insurance premiums for freight brokers are determined by underwriters who assess your business’s overall risk profile. The type of freight you handle, your location, annual revenue, staffing levels, and claims history all play a role in shaping what you’ll pay.

Claims History

A history of frequent claims can raise premiums, as insurers view this as a sign of higher risk. Maintaining a clean record often helps secure discounts and lower rates.

Office Equipment And Property Value

High-value assets such as computers, software systems, or office furniture increase property insurance costs. Many brokers also add coverage for cyber liability or equipment breakdown to protect critical business tools.

Type Of Freight You Handle

Not all freight carries the same risk. Brokers arranging hazardous materials or high-value cargo typically face higher premiums, while those handling general goods may pay less.

Location Of Your Business

Where your brokerage operates matters. Offices in high-crime areas, disaster-prone regions, or heavy-traffic zones often pay more for liability and property coverage compared to those in safer, low-risk locations.

Use Of Carrier Partners

Working with reliable, well-insured carriers can reduce your risk profile. Partnering with carriers that have poor safety records, however, may increase your premiums.

Size Of The Operation

Larger brokerages with more employees, higher annual revenue, or multiple offices face greater risks. More staff increases workers’ compensation costs, while higher activity levels raise the likelihood of claims.

How To Lower Your Freight Broker Insurance Costs

Running a freight brokerage can be costly, but your insurance premiums don’t have to overwhelm your budget. While coverage is essential, there are practical ways to cut costs without sacrificing protection.

Raise Your Deductible

Opting for a higher deductible is a straightforward way to lower monthly premiums. Just be sure you can comfortably cover the out-of-pocket amount if a claim arises.

Bundle Policies Together

Combining coverage often leads to savings. Many insurers offer a Business Owner’s Policy (BOP) that merges general liability and property insurance at a reduced rate. Adding workers’ compensation through the same provider can unlock additional discounts while simplifying paperwork.

Ask About Discounts

Insurers frequently reward loyalty and upfront payments. You may qualify for reduced rates by signing a multi-year agreement or paying your premium in full instead of monthly installments.

Build A Safer Workplace

Accidents and claims can quickly drive up insurance costs. Working only with vetted, well-insured carriers, using clear contracts, training staff on compliance and safety procedures, and protecting sensitive customer data all help reduce risks. Fewer incidents mean lower liability premiums over time.

Strengthen Your Safety Program

Workers’ compensation costs can be managed by focusing on employee safety. Training staff on ergonomics, safe lifting techniques, and cybersecurity protocols reduces injuries and claims. When fewer claims are filed, premiums stay lower.