A freight broker normally does not take possession of cargo and, consequently, there is no broker liability, generally speaking. When damage or missing pieces occur, the parties involved may look to the bill of lading, separate contracts and, perhaps, the Carmack Amendment which places the liability squarely on the motor carrier when the carrier has possession of the cargo.
When it comes to personal injury, however, this is another issue. Brokers are more likely to get hit here with a liability suit for one reason or another. Actual negligence or vicarious liability come into play here.
The broker's conduct and the relationships between and among the parties need to be understood and clarified. Sometimes a shipper is uncertain if they are dealing with a motor carrier or a broker.
This is why, in my training, a simple statement is included in the broker's set up package whereby the broker indicates his or her role relating to both the shipper and the carrier. The broker should indicate that they are independent contractors, that they do not take possession of the cargo, that they are not a motor carrier and so on.
Making these simple statements can go a long way toward lessening freight broker liability. If you are uncertain about your legal liability, you might want to consider comprehensive training where all the details of operating a freight brokerage are covered. Check it out at: http://www.atexfreightbrokertraining.com
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