Enterprise Risk Framework·5 Domains

We don't sign anything
that misallocates risk.

Every customer contract negotiated. Every carrier agreement attorney-reviewed. Every employment agreement court-tested. Every vendor term challenged. This is how Core protects $50M+ in annual freight.

16
Contract Sections
Employment Agreement
$3.3M+
Coverage Stack
Total Insurance
2–0
Court Record
Undefeated
24mo
Non-Compete
Nationwide Scope
0
Auto-Renewals
Every Term Negotiated
$150
Tracking Penalty
Per Non-Compliant Load
The Thesis

In freight brokerage, the #1 cause of failure isn't lack of revenue — it's uncontrolled liability. Brokers sign customer contracts with unlimited indemnification. They skip carrier vetting. They use boilerplate employment agreements that don't hold up in court. One bad claim, one rogue employee, one lawsuit — and they're done.

Core takes a different approach. Every contract — customer, carrier, employee, vendor — is negotiated, reviewed by outside counsel, and structured so that contractual exposure never exceeds insurable risk.

What's At Stake

One uncapped indemnification clause.
One lawsuit. One bankruptcy.

The #1 cause of broker failure isn't lack of revenue. It's a single claim that exceeds coverage because someone signed a contract they shouldn't have.

The Difference

Most Brokers vs. Core Logistics

Most Brokers

Risk 7/7
  • Sign customer contracts as-is to book freight faster
  • Accept unlimited indemnification for carrier acts
  • Use boilerplate employment agreements from LegalZoom
  • No carrier penalty structure — just hope for compliance
  • Auto-renew vendor contracts without reviewing terms
  • Match insurance to budget, not contractual exposure
  • React to legal problems after they happen

Core Logistics

Risk 0/7
  • Negotiate every customer contract — willing to walk away from revenue
  • Cap indemnification at insurable limits, citing federal transportation law
  • 16-section employment agreement reviewed by outside counsel, tested in court
  • $150/load tracking penalties, $50/day late POD, $75K surety bond required
  • Zero auto-renewal contracts — every vendor term challenged and defined
  • $3.3M+ insurance stack structured to match contractual obligations exactly
  • Monthly legal sessions with Mathis Law Group — proactive, not reactive
01

Customer Agreements

Core never signs a customer contract as-is. Every agreement is redlined, negotiated, and structured to protect Core's broker role. Negotiations routinely take 2-3 months. Core will walk away from revenue before accepting misallocated risk.

The Core Principle

Under federal law (49 U.S.C. § 13102), a broker is not a motor carrier. Core does not own trucks, employ drivers, or control carrier operations. Every customer agreement must reflect this legal reality. When customers demand unlimited indemnification for carrier acts, Core redlines it — every time.

Case Study 01

Pacific Seafood

$2.5B revenue · 2,500+ employees · Shipper-Broker Agreement

3 monthsExecuted

The Issue

Pacific's standard Shipper-Broker Agreement (Section 6(d)) required the broker to indemnify Pacific for all unpaid cargo claims without limit — effectively making Core an insurer of last resort for any cargo loss, regardless of carrier fault or Core's own negligence.

Negotiation Timeline

May 2025Counter

Pacific sends standard Shipper-Broker Agreement with unlimited indemnification

Jun 2025Core

Core sends redlined version — caps indemnification at $250K cargo coverage limit

Jul 2025Counter

Pacific legal reviews. Back-and-forth on Section 6(d) language and insurance requirements

Aug 4Resolved

Rick sends final executed agreement with Core's revision accepted. Sherry Sorenson forwards to Pacific legal.

§ 6(d)Core's Key Revision — Indemnification Cap

"Broker shall be responsible for payment of any such claim for damages not exceeding the limits of Broker's contingent liability coverage of $250,000, or in the event that Shipper has complied with the requirements for high value loads as set forth in Section 3(c)(iv), not exceeding the limits of such increased insurance coverage limits."

Core Accepted
  • Core carries $250K contingent cargo coverage
  • Carriers carry $250K primary cargo liability
  • Core bridges the gap if carrier insurance is insufficient
  • 48-hour notice for loads exceeding $250K
Core Refused
  • Unlimited indemnification for carrier failures
  • Vicarious liability for motor carrier acts
  • Open-ended cargo claim exposure
  • Any obligation beyond broker's own negligence
Case Study 02

Rain for Rent

Liquid handling solutions · National fleet · MSA negotiation

9 daysExecuted

The Issue

R4R's Master Service Agreement (Sections 5.2 and 5.3) required the broker to indemnify for all carrier acts and omissions — effectively making Core liable for the behavior of independent motor carriers it doesn't employ, control, or insure.

Negotiation Timeline

Jan 26Core

Core sends redlined MSA with revised Sections 5.2 and 5.3

Jan 28Counter

Kristina McDaris submits to R4R procurement for review

Jan 29Core

Rick proactively sends Core's Broker-Carrier Agreement for transparency — unprompted

Feb 2Counter

R4R procurement sends revised 5.2/5.3 accepting Core's framework with slight modifications

Feb 3Resolved

Rick accepts revised language — both parties in agreement

§ 5.2(b)Broker Indemnification — Scoped

"Broker indemnifies R4R only for: (i) Broker's own negligence or willful misconduct, (ii) material breach of the Agreement, (iii) failure to use a properly qualified carrier."

§ 5.2(c)No Carrier Performance Guarantee

"Nothing in this Agreement requires Broker to guarantee carrier performance. Cargo liability is limited to Section 3.5."

§ 5.3Carrier Independence

"Carriers are independent contractors, not agents of Broker. Broker is not liable for carrier acts unless Broker failed to comply with vetting requirements."

Radical transparency: Rick sent Core's standard Broker-Carrier Agreement to R4R's procurement team — unprompted — so they could see exactly how carriers are held accountable. This accelerated the negotiation from weeks to days.

Case Study 03

Sunstate Equipment

Heavy equipment rental · National operations · Amendment negotiation

Initially RejectedExecuted

The Issue

Sunstate's Master Vendor Agreement (Article 13) required the broker to "defend, indemnify and hold harmless Sunstate from ANY claim... caused by, arising out of, resulting from the performance of the work by Broker, the selected carriers or their respective agents or employees." This was a blanket indemnification for all carrier activity. Core struck the entire clause.

Negotiation Timeline

Nov 18Counter

Sunstate sends Master Vendor Agreement with blanket indemnification

Dec 23Counter

Sunstate initially REJECTS Core's amendment — 'multiple brokers available'

Jan 22Core

Core comes back with legal reasoning, signed agreement + amendment + broker-carrier agreement

Jan 28Counter

Linda Jones (Sunstate Contract Manager) adds red line to conflict language

Jan 29Core

Rick proposes revised conflict language — 'This Amendment governs solely with respect to indemnification'

Feb 2Resolved

Linda sends final amendment. Rick accepts. Fully executed documents exchanged.

AmendmentFinal Indemnification Language

"Broker indemnifies Shipper harmless only to the extent claims are directly caused by the negligent acts or omissions of Broker. Broker NOT responsible for: (1) acts/omissions/negligence/misconduct of any motor carrier; (2) acts of Shipper, its agents, employees; (3) bodily injury/property damage from operation, maintenance, use, loading, or unloading of motor vehicles."

The comeback: Sunstate initially rejected Core's amendment entirely — "multiple brokers available." Most brokers would have signed the original. Core came back with legal reasoning, full transparency, and collaborative language. Two months later: fully executed agreement. Sunstate is now a preferred provider account.

02

Carrier Agreements

Core's Broker-Carrier Agreement was reviewed by outside counsel (Mathis Law Group) and includes operational penalties, comprehensive indemnification, and compliance requirements that most brokers never enforce.

  • Carrier indemnifies Core, shipper, consignee, and any managed transportation/4PL partner
  • Obligation to defend includes all costs of defense as they accrue
  • Co-brokered loads: carrier indemnifies both Broker A and Broker B
  • Carrier solely responsible for safety, operations, equipment, and all drivers
  • No re-brokering without written consent — violation triggers consequential damages
  • Carrier released from liability only upon Broker payment to delivering carrier
FMCSA Authority
Active MC/DOT required
CSA Safety Scores
Satisfactory or unrated only
Insurance Verified
Primary cargo + auto + CGL
Creditworthiness
Financial stability checked

Radical Transparency

Core proactively shares its Broker-Carrier Agreement with customers — unprompted — so they can see exactly how carriers are held accountable. This level of supply chain transparency is rare in the brokerage industry and accelerates customer negotiations.

03

Employment Contracts

Core's employment agreement is a 16-section legal architecture that protects customers, prospects, employees, and proprietary information. It has been challenged twice in court. Core won both times.

"This is Core's most critical document." — Rick Mancebo

Non-Compete

24 months

Nationwide scope. Covers any entity in transportation, logistics, 3PL, brokerage, M&A in transport sector, or PE/hedge funds investing in competitive businesses.

Non-Solicitation

7 categories

2-year prohibition covering: customer solicitation, employee poaching, contractor solicitation, supplier interference, acquisition target interference.

Trade Secrets

3 years

Post-employment obligation. Covers strategic plans, pricing, customer lists, carrier info, acquisition targets, know-how, IP, and software.

Enforcement Record

Core
2
vs
Undefeated
Challengers
0

Challenged twice by former employees attempting to solicit Core's customers and carriers. Core prevailed both times.

No bond required for injunction — court grants immediate relief
Constructive trust imposed on violation profits
Employees must notify new employers of restrictions AND notify Core
Attorneys' fees borne by breaching employee
Jurisdiction: Broward County, FL · Arbitration via AAA

Florida CHOICE Act (2025)

When Florida passed the CHOICE Act in 2025, Core didn't wait for a problem. Rick proactively engaged outside counsel to update the employment agreement before the law took effect.

CHOICE Act allows up to 4-year non-compete for employees earning >$132K
Requires 7-day notice period and right to consult attorney
Core adopted single agreement for all new employees incorporating CHOICE Act
Legacy agreements preserved — CHOICE Act affects non-compete only
Monthly recurring legal sessions established with Mathis Law Group

16-Section Agreement Architecture

8/16
01Employment & Duties

Defines role, responsibilities, and Core's right to modify duties

02Compensation

Salary, bonus, commission structures with clawback provisions

03At-Will Termination

Either party can terminate; Core retains all protections post-exit

04Trade Secrets

3-year post-employment obligation covering pricing, customers, carriers, IP

05Non-Compete

24-month nationwide scope covering transport, 3PL, brokerage, PE

06Non-Solicitation

7 categories: customers, employees, contractors, suppliers, targets

07Employer Notification

Core can notify future employers of restrictive covenant obligations

08Prior Employment

Employee warrants no conflicting obligations from prior employers

04

Vendor Discipline

Core negotiates every vendor agreement with the same rigor applied to customer contracts. Zero auto-renewal clauses. Zero open-ended commitments. Every relationship is structured for operational flexibility and Core's benefit.

  • Auto-renewal contracts with any vendor
  • Open-ended pricing commitments
  • Agreements without termination-for-convenience
  • Technology vendor lock-in without data portability
  • Dependency without exit strategy
05

Insurance Architecture

Core's insurance program is structured specifically for the broker role. Every coverage tier matches the contractual obligations in Core's customer and carrier agreements. Contractual exposure never exceeds insurable risk.

Total Coverage Stack
All tiers structured to match contractual obligations
$3.3M+

The Bridge Principle

Core's contractual exposure never exceeds its insurable risk — the single most important survivability factor in freight brokerage.

Step 01
Cap

Customer agreements cap liability at coverage limits

Step 02
Require

Carrier agreements require primary coverage

Step 03
Bridge

Core bridges the gap — no uninsured exposure

"We don't rush to do things. A lot of brokers are just bringing on the business — sign anything, book the load. We do it the right way. We mitigate risk everywhere — from an insurance standpoint, from a customer standpoint, from an employment standpoint. Risk mitigation across the board. That's why we're still here."
Rick Mancebo
Partner & Managing Director, Core Logistics
Investor Takeaway

Why This Is the Moat

Most brokers don't have the legal infrastructure, the patience, or the willingness to walk away from revenue to build this kind of framework.

Survivability

Contractual exposure never exceeds insurable risk. Zero open-ended indemnification clauses in any active contract.

Trust Accelerator

Willingness to walk away from revenue rather than accept misallocated risk builds trust with sophisticated procurement departments.

Supply Chain Transparency

Proactively sharing broker-carrier agreements accelerates customer negotiations and demonstrates accountability.

Talent Protection

16-section employment agreements with proven enforcement history (2-0 court record) protect customer relationships and enterprise value.

Legal Sophistication

Citing federal transportation law, structuring insurance to match contractual obligations, and maintaining monthly legal sessions.

Unreplicable at Scale

This framework took years to build, test in court, and refine. It cannot be copied overnight. It compounds over time.

The Verdict

This framework took years to build.
It cannot be copied overnight.

Every contract negotiated. Every clause tested. Every domain fortified. This is the architecture that makes Core Logistics not just a broker — but an institution.