Adam Wingfield
7 min read
Many carriers skim through setup packets just to get the load—especially when they’re scrambling to fill backhaul miles or respond to a hot reload alert on a load board. That urgency makes it easy to treat all brokers like they’re the same, assuming the terms must be standard. But buried in that rush is where the danger lives. Because what looks like boilerplate language can actually wreck your cash flow, tie your hands for months, or leave you stuck paying for someone else’s mistake.
We’ve seen it too many times: a carrier signs a setup packet in five minutes just to get moving, not realizing they agreed to unlimited liability, 90-day payment terms, or a non-compete clause that locks them out of working with a customer for two years. The difference between a clean agreement and a bad one isn’t always obvious at first glance—but it shows up when a load gets damaged, payment doesn’t come on time, or a broker deducts thousands from your settlement with no warning. This article is here to slow you down—not in your hustle, but in your process. Because the fine print isn’t just paperwork. It’s protection—or exposure. And if you’re serious about building a business that lasts, you’ve got to learn how to read every carrier packet like your business depends on it—because it does.
Red Flag 1 – You’re Responsible for Everything, No Matter What
One of the most common lines you’ll see in these contracts is a wide-reaching indemnification clause that puts the entire burden on you.
“Carrier shall defend, indemnify, and hold harmless the Broker and its customers from any and all claims, losses, damages, or liabilities.”
Why it matters: Even if the issue wasn’t your fault, you’re now liable for claims, legal fees, and financial losses. This kind of language offers zero protection for the carrier.
What to look for instead: Mutually agreed indemnification that limits your responsibility to your actual actions—not someone else’s mistakes or vague allegations. For example, if it was act of nature or shipper error, you should not be liable for damages.
You’ll often find a clause that says:
“Carrier shall not re-broker, subcontract, or assign any shipment without prior written consent. If violated, Broker has no obligation to pay.”
Why it matters: If you run a leased-on driver or owner operator, that might technically qualify as rebrokering under this language—and they can use it as a reason not to pay you.
Solution: Always clarify what they mean by “subcontracting” and get written approval if you intend to run the load using a different driver or team member.
