Question
We have recently started getting loads off of internet truck stop.com and there are numerous brokers on there posting freight to be hauled --- since we are new to finding loads this way we have had to add a couple of brokers to our insurance as additionally insured ---- it is a hassle filling out paperwork for myself and my insurance agent, I was just notified that my insurance company will be charging me $50.00 per year per broker for each additionally insured ---- is this common practice or is my insurance company trying to be compensated for the hassle of the extra paperwork??
So say we haul loads for 2006 through 12 different brokers at $50.00 each or $600.00 ---------------- depressing
Answer
The fee is not necessarily for the paperwork. It's for the added exposure to the policy. Keep in mind, every time you add one of your brokers to your policy, there is a certain amount of coverage extended to that entity as it respects the specific endorsement.
So, simply put .... added exposure to the insurance company = added premium.
On a side note, I have seen insurance companies provide this endorsement without charge and I have seen them charge as much as $200 per endorsement. So, $50 is not a bad deal in comparison.