Most organizations don’t think of themselves as transportation companies, yet there are moments when they take on transportation activities: A school district arranges student buses; a farm hires haulers to move product to market; a construction firm shifts equipment between job sites; a hospital contracts patient transport. In each case, someone signs off on a third-party transportation provider and that decision can carry real responsibility.

United States law has long recognized that parties selecting a transportation provider have a duty of “ordinary care.” The Supreme Court’s May 2026 ruling in Montgomery v. Caribe Transport II, LLC reinforced this principle for freight brokers specifically, confirming that negligent-selection claims against them can proceed under state law.1 The broader takeaway applies well beyond brokers: If you pick the provider, you own the selection decision and the exposure that comes with it. That risk touches any organization hiring motor carriers, freight brokers or third-party logistics (3PL) firms. The organizations that respond well build a documented selection process that both reduces their exposure and demonstrates a real commitment to safe operations.

What does “ordinary care” look like in practice?

Ordinary care is well within reach for any organization willing to build a well-documented, consistent and thoughtful approach to how a transportation provider is chosen. Sound transportation risk management rests on three practices:

  • Documented vetting — Before engaging any motor carrier, verify their federal operating authority, insurance status and safety record through public databases such as the Federal Motor Carrier Safety Administration’s (FMCSA) Safety Measurement System (SMS) in the U.S. and National Safety Code (NSC) Carrier Profile or Commercial Vehicle Operator’s Registration (CVOR) Carrier Abstract Reports in Canada. Set written safety thresholds and apply them the same way every time. A consistent transportation provider risk assessment gives you a record you can stand behind.
  • Ongoing monitoring — A provider that qualified last year may not qualify today. Recheck authority status, safety ratings, inspection results and insurance status on a regular schedule, and act when something changes.
  • A defensible rationale — When a provider’s safety profile raises questions, document why you proceeded or chose an alternative. A selection driven solely by cost, with no record of safety consideration, is the highest-risk position to be in.

Where can contracts and coverage strengthen your position?

Vetting transportation providers is only half the picture. Strong logistics risk management pairs a documented selection process with agreements and insurance that reflect current expectations. Written agreements with your transportation providers should clearly allocate responsibility, set insurance requirements and include indemnification provisions suited to the engagement. Qualified legal counsel can help confirm those provisions hold up.

On the coverage side, organizations that rely on third-party transportation should evaluate whether their current liability program addresses the exposures created by provider selection. Contingent cargo and contingent auto liability coverage, for example, can respond when a hired provider’s own insurance falls short — canceled, insufficient or excluded at the moment a loss occurs.

Understanding your liability matters most for organizations that have already begun treating transportation as a risk management function — and for those who haven’t, now is the time. A well-structured insurance program protects the operation and signals to partners a commitment to fortifying the supply chain.

The principle is simple: The party that makes the selection decision owns the risk that comes with it. The organizations in the strongest position don’t just have a process — they can prove they followed it.

Connect with HUB International’s transportation experts to start building a defensible third-party transportation risk management program and 3PL risk management strategy.

1 FreightWaves.com, “SCOTUS rules 9-0 against brokers in Montgomery case,” May 14, 2026.