Freight Broker Bond
Do you deal in freight work? Are you looking for a company that will be able to provide you a truck broker bond in any of the fifty states plus Washington DC? Do you need license and permit bonds? Topsurety.com has years of experience working to provide freight broker bonds in all states with a competitive interest rate. It is an easy and convenient way to get all of your bond requirements no matter what state you need one for.
What is a truck broker bond?
A freight broker bond, or truck broker bond, is a requirement from the Federal Motor Carrier Safety Administration. The Administration requires all freight brokers and forwarders to file a surety bond before receiving a license. The bond ensures that licensed freight brokers and forwarders are held to high standards, and will complete the job they were hired to do. It also prevents fraud or failure to pay motor carriers or shippers.
What happens when you do not comply with the contract you have entered into? The surety bond is the backup. The party that suffers damages can file a claim against the bond. If it is a valid claim, the surety company will pay to settle the claim up to the amount of the bond. Then the license holder has to pay the remainder of the claim. The truck broker bond is valid for one year from the date it was issued, but can be terminated any time during that year with a thirty day notice.
There is another option, however. A trust fund can be established instead of using a surety bond. This option required full collateral up front, so it is not the ideal choice. A surety bond from topsurety.com is a better route.
How much will a truck broker bond cost?
Under the most recent update to the law, the freight broker license bond amount is now seventy five thousand dollars. The premiums for the bonds depend on which state you are looking to become a licensed freight broker or forwarder. It also depends on your credit. Top Surety has competitive rates, which in some states with good credit can be as little as nine hundred and thirty eight dollars. It is also easy to renew your bond and may even qualify for the best available premium if there are no claims against your bond.
Did you know there is more to license and permit bonds?
Before beginning operations, a freight broker/forwarder has to register with the Administration. These brokers are required to have either three years of relevant experience or sufficient evidence demonstrating their knowledge of the freight industry to be approved. The steps to take to become a broker include:
– Filing an OP-1 Application for Motor Property Carrier and Broker Authority
– Providing proof of insurance coverage – this means the truck broker bond or the trust fund agreement, either for seventy five thousand dollars
– Submit a BOC-3, which is the form for a designation of process agent
– Pay the non-refundable filing fee of three hundred dollars
Similar to freight brokers, freight forwarders need to apply with:
– Liability insurance, the amounts vary on the different insurance requirements including freight, vehicles weighing less than 10,001 lbs. Also includes transporting non-hazardous freight, passenger vehicles, and passenger vehicles with a capacity of fifteen people or less.
– Proof of cargo insurance, which will depend on the cargo
How will TopSurety.com make applying for a truck broker bond easy?
This type of surety bond is required by law prior to you getting a license and beginning your business. You need proof of this bond before you can even apply for the license at all. Do you not want to begin work as soon as possible? That is why they are a great choice for you to get your bond from. They have the experience and the ability to process your application in a quick and efficient manner. All you need to do to apply is follow these steps:
– Fill out the simple and easy online application
– Pay for your bond with quick and easy payment options
– Then you will receive your bond with an instant digital copy
To make the process even easier, they will even submit a copy of your bond to the Administration on your behalf to save you a step. There is no physical bond. Take action and visit their website for more information.