B. Liability
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Elena Vance, J.D.
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11 min read
Freight Broker Liability: Holding Logistics Intermediaries Liable for Negligent Selection
Freight brokers frequently hire fly-by-night motor carriers with terrible safety ratings. Learn how Texas courts interpret negligent broker selection claims following landmark Fifth Circuit decisions.
Key Legal Takeaways
- Brokers have a legal duty to verify carrier safety ratings and active operating authority prior to dispatch.
- Federal FAAAA preemption defenses can be overcome through safety exception jurisprudence.
- Broker liability policies provide crucial excess insurance coverage when carrier limits are exhausted.
Negligent Carrier Selection Claims
Under Texas common law, an entity that hires an independent contractor has a duty to exercise reasonable care in selection. Brokers that ignore FMCSA conditional safety ratings or high BASIC alert scores can be sued directly for negligent hiring.
Frequently Asked Questions
Why sue the freight broker in addition to the trucking company?
Small motor carriers often carry only the minimum $750,000 policy, which is insufficient for catastrophic injuries. Freight brokers often carry $5M–$25M in corporate coverage.