What a broker-carrier agreement actually commits you to

A dispatcher sends over a broker-carrier agreement a few hours before your first load is supposed to move. It's a dozen pages of defined terms, indemnification clauses, and payment language, and the pickup appointment is tomorrow morning. Most carriers sign it without reading past the rate and the pickup number. That's where problems start, because this document controls what happens the day something goes wrong, not the day everything goes right.

What the agreement is actually for

A broker-carrier agreement is not the load tender. The load tender or rate confirmation covers one shipment: origin, destination, rate, equipment, dates. The master agreement sits underneath every load you ever haul for that broker and sets the rules that apply by default unless a specific load says otherwise. Carriers who only read rate confirmations are often surprised, months later, by a clause they agreed to on day one.

Insurance and indemnification

Almost every agreement requires you to carry specific minimum levels of auto liability and cargo insurance, name the broker (and sometimes the shipper) as an additional insured or certificate holder, and notify the broker before any policy lapses or changes. Indemnification clauses typically go further: you agree to cover the broker's losses if your negligence causes a claim, and in some versions, you agree to defend the broker even in disputes that aren't clearly your fault. Read this section line by line. If language seems to shift risk onto you for things outside your control, ask about it before you sign, not after a claim is filed.

Payment terms and chargebacks

Payment terms vary by broker, and this is one area where there is no single industry standard. Some pay on standard terms after receipt of a clean proof of delivery and invoice; others offer quick-pay for a fee. The agreement should spell out what documentation triggers payment, how long you have to submit it, and what happens if something is missing. It should also disclose chargeback conditions — detention disputes, shortage or damage deductions, service failure penalties — in plain terms. If a broker's agreement is vague on when and how you get paid, that vagueness is itself useful information.

Double brokering and who can actually haul the load

Most agreements explicitly prohibit re-brokering the load to another carrier without written consent. This isn't boilerplate — double brokering is a real liability and insurance problem, and brokers increasingly verify that the truck and driver on the ground match what was contracted before the load moves. Ellys vets carriers against live FMCSA data before dispatch and keeps that network invite-only specifically to keep this risk out of the chain, not just to screen onboarding paperwork once.

Claims, liability, and termination

Look for how cargo claims are filed, what time limits apply, and who holds the burden of proof for damage or loss. Also check the termination clause: how much notice either side owes, and what happens to loads already in transit if the relationship ends mid-contract. These sections rarely get attention until there's a dispute, which is exactly when their wording matters most.

None of this is unique to one broker. It's worth understanding before you sign with anyone. Ellys works with carriers across the US-Mexico corridor in English and Spanish, bonded under a BMC-84 surety bond, and the agreement we use follows the same logic described above. If you want to see how onboarding works, start at /carriers.