Insurance Business ReviewOCTOBER - NOVEMBER 20258DEFENDING BROKER LIABILITY CLAIMSBy Penny Sturdevant, Director of Claims, STG LogisticsAs the freight and logistics sector continues to grow, so too does the litigation risk facing freight brokers -- particularly in catastrophic loss cases. Courts, legislators and regulators are increasingly scrutinizing broker conduct, authority and vetting practices, prompting important questions for insurance defense counsel. The evolving landscape raises both practical and strategic concerns in defending brokers and insurers against negligence claims.Two Paths to ExposureBroker liability claims typically follow one of two theories:1. Employer-by-Control: Plaintiffs argue the broker exercised sufficient control to be considered an employer or co-carrier. This hinges on operational details -- dispatch authority, payment structures or control over the driver's conduct.2. Negligent Selection and Vetting: The more common claim is that the broker "knew or should have known" the motor carrier was unsafe. This theory exposes brokers IN MY OPINIONPenny Sturdevant
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