breaking

Supreme Court Ruling Exposes $75K Broker Bond as Inadequate for Liability Coverage

A landmark Supreme Court decision has eliminated the FAAAA preemption shield that protected freight brokers for decades. The ruling allows shippers and injured parties to sue brokers directly for negligent carrier selection. The current $75,000 surety bond requirement cannot address this liability. The federal bond, last increased in 2012 under MAP-21 legislation, covers only broker payment defaults to shippers and carriers. It does not respond to personal injury judgments. Median nuclear verdicts in trucking cases now reach $36 million, leaving the industry significantly exposed. The FMCSA's January 2026 enforcement tightening closes surety bond loopholes but provides no liability protection. While some brokers carry contingent auto liability insurance, no federal requirement mandates bodily injury coverage. The gap between required bonding and actual litigation exposure has become a pressing industry concern.