What should I check about a freight brokerage’s cargo claims handling?

Cargo claims show how a brokerage behaves when things go wrong. Ask for the complete log, including small and denied claims, and sort them by shipper, carrier and cause. A cluster tied to one carrier or one lane points to a process problem.

Read several files all the way through. You want to see the first report, the evidence collected, the communication with the shipper and carrier, and the outcome. Check how quickly the brokerage acknowledged the issue and whether a person was responsible for it.

Ask about insurance. What coverage does the brokerage carry, who pays deductibles and has any claim been denied? Your insurance adviser can explain what the policy documents mean in practice. Finally, ask what is still open. Unresolved claims can pass to the new owner unless the purchase agreement says otherwise, so ask your lawyer how to deal with them. Also ask whether shippers have left after a bad claim. Ask the claims handler how they decide when to pursue a carrier for recovery, because patience or haste there affects both cost and the relationship with the carrier network. Ask what shippers were told during claims, and whether anyone owned the follow-up.

Key takeaways

• Review the full claims log, including small and denied claims, by shipper, carrier and cause.
• Read sample files from first report to settlement.
• Settle in the agreement who handles claims still open at closing.