Broker bond vs verdict calculator

The math behind freight broker negligent-hiring exposure post Montgomery v. Caribe Transport. Move the sliders, see the gap.

Inputs

Expected verdict$10,000,000

$500KMedian $36M$100M

Carrier's primary auto liability$1,000,000

$750K (FMCSA min)$1M (typical)$5M

Your contingent auto liability$1,000,000

$0 (uninsured)$1M (entry)$5M$10M

I have a per-load, tamper-proof vetting record on this carrier

Where the money actually comes from

Federal broker bond ($75K)$0 — does not respond to bodily injury

Carrier's primary auto liability$1,000,000

Your contingent auto liability$1,000,000

Total available coverage$2,000,000

Nominal verdict$10,000,000

Worst-case personal exposure

$8,000,000

If the case goes to verdict at the nominal amount and all coverage exhausts, this is what comes out of your balance sheet. The bond does not help.

Realistic settlement estimate

$5,500,000

Most cases settle below nominal verdict. Documented vetting compresses settlement materially — with your per-load record, plaintiff's counsel adjusts demand expectations downward.

Gap above coverage at this settlement$3,500,000

How this works. The calculator assumes a bodily-injury negligent-hiring case post Montgomery v. Caribe Transport. Coverage flows: carrier's primary auto liability first, then broker's contingent auto liability, then any excess layers. The $75K federal broker bond does not respond — it covers carrier non-payment and cargo claims only.

Documented vetting compresses settlement multipliers by shifting plaintiff demand expectations. The 55% vs 95% of nominal verdict multipliers used here are illustrative industry midpoints; actual outcomes vary by jurisdiction, fact pattern, and defense quality. Independent counsel can provide a case-specific estimate.

VettedHaul is not a law firm. This calculator is a planning tool, not legal or financial advice.

What the calculator shows

Move the verdict slider to the median trucking verdict ($36M) with carrier primary at the FMCSA minimum ($750K) and your contingent auto at $1M. The result is approximately $34M of uncovered exposure. That comes out of your balance sheet unless excess coverage or contractual indemnification closes the gap.

Move the verdict slider to $100M (a nuclear verdict, multiple of which occur in trucking every year). With $5M in contingent auto, the gap is $94M. Most broker balance sheets do not survive that.

Toggle the documented-vetting checkbox. With documented vetting, settlement compresses materially because plaintiff's counsel adjusts demand expectations when faced with a defendant who can produce contemporaneous evidence of reasonable care.

VettedHaul builds the documented vetting record.

Per-load, per-carrier, signed and timestamped at booking. Subpoena-ready evidence pack on demand.

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