Brokers and 3PLs live next door to Carmack liability. Under the Carmack Amendment, “carriers” face near-strict liability for cargo loss, damage, and delay on interstate moves, while true brokers generally don’t. The problem is that courts look at what you do and how you hold yourself out, not just what your authority says. If your contracts, marketing, or paperwork blur the line, a claimant will try to treat you like a carrier. What follows are the four traps that most often turn brokers into “accidental carriers,” along with practical ways to fix them quickly.

Trap One: Your Name Appears on the Bill of Lading Like a Carrier

When a broker’s name shows up in the carrier box on a bill of lading, or when the broker issues a house bill of lading that reads like a carrier document, it hands plaintiffs a ready-made exhibit for re-labeling the broker as a carrier.

The fix is straightforward. Keep your name off the carrier line altogether. Wherever your role is referenced, clearly state that you are providing brokerage services only. Make sure the bill of lading, the rate confirmation, and related communications direct cargo claims to the actual motor carrier. If you must touch the bill of lading for administrative reasons, include unambiguous language stating that you are acting solely as a property broker, and identify the carrier by its full legal name along with the correct DOT and MC numbers.

Trap Two: Your Contracts Promise Delivery or Assume Cargo Liability

Broker-shipper agreements often create problems when they say the broker will “transport,” “deliver,” or “ensure delivery” of freight, or when they accept responsibility for cargo loss or damage. Language like this invites Carmack treatment regardless of how the broker is licensed.

To fix this, define your role narrowly and precisely. Your agreement should state that you arrange transportation as a licensed property broker. Cargo liability and Carmack claim handling should be allocated to the motor carrier. Require the carrier to maintain appropriate insurance and ensure that your broker-shipper agreement is back-to-back with your broker-carrier agreement. Include clear disclaimers of carrier status and limit any indemnity obligations to your own brokerage negligence, not cargo loss or damage.

Trap Three: Your Marketing Looks Like a Carrier’s

Marketing materials are frequently overlooked, but they are a common source of “holding out” arguments. Websites and sales decks that talk about “our fleet,” “nationwide carrier solutions,” or feature truck photos branded with your logo can suggest that you provide transportation rather than brokerage services.

The fix starts with a careful scrub of your messaging. Replace “we haul” language with “we arrange.” Clearly publish your broker authority and avoid displaying a carrier DOT number that you do not hold. If you have an affiliated carrier, keep the brands, legal entities, insurance programs, and sales channels clearly separated. Blurred lines between affiliated entities make it much easier for a claimant to argue that you are operating as a single carrier enterprise.

Trap Four: You Take Custody or Operate Like You Own the Trucks

Exercising direct control over drivers, equipment, or routing can look like carrier operations, especially when a broker takes physical custody of freight, cross-docks shipments, or stores goods. Day-to-day operational control is one of the fastest ways to undermine broker status.

When possible, avoid physical custody of freight altogether. If you offer value-added services, document them correctly. Use warehouse receipts under the UCC framework and maintain separate warehousing entities, facilities, and insurance programs distinct from brokerage operations. Operational instructions should be commercially reasonable and shipper-facing, not direct driver control or dispatch-style management.

Claims Still Happen—Handle Them Without Adopting Carrier Liability

Even when you successfully avoid being labeled a carrier, claims will still arise. Teams should be trained on Carmack timelines. Carriers may require written claims within nine months of the loss, and lawsuits must be filed no later than two years from written denial. Acknowledge claims in writing, calendar both deadlines, preserve evidence such as bills of lading, photos, seal records, ELD or GPS data, and temperature logs, and route the claim to the carrier named on the bill of lading. If a shipper pressures you for recovery, coordinate the process without assuming carrier liability by accident.

If You Are a Carrier, Limit Exposure Correctly

When you are acting as a carrier on a move, your paperwork needs to do real work. Carmack allows enforceable limitations of liability when the shipper is given a genuine, rate-tied choice of value before the shipment moves and the agreement is reflected on the bill of lading. Pair that approach with a clear exclusion of consequential damages if you do not intend to cover losses such as line shutdowns, missed retail windows, or lost production.

Cross-Border Moves Add Another Layer

Cross-border and ocean shipments introduce additional complexity. Through bills of lading issued overseas generally keep Carmack from applying to the U.S. inland leg. Shipments involving Canada or Mexico may trigger Carmack on outbound moves, but not always on inbound freight.

The Practical Takeaway

For brokers, the takeaway is simple. Structure your documents, marketing, and operations so that your role is unmistakably brokerage, regardless of the route or customer. Clarity on the front end is often the difference between a routine claim and unintended carrier liability.