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RXO Touts Rigorous Carrier Vetting, Insurance Coverage Amid Litigation Concerns

RXO highlighted its carrier screening standards and insurance protections during second quarter earnings discussions, positioning itself defensively as the brokerage sector faces heightened litigation risk. The 3PL maintains some of the industry's strictest vetting practices, including barring carriers with conditional FMCSA ratings from its network. The company also requires active authority status for at least 90 days before carriers can serve customers. CFO Jamie Harris stated the company annually spends between $15 million and $20 million on insurance coverage, describing this as a baseline for forecasting. Harris emphasized RXO's vetting process and safety record rank among the industry's best. The comments reflect broader concern across freight brokerages following major liability verdicts, as carriers navigate an increasingly litigious environment.