Freight Broker Surety Bond
When preparing to apply for a freight broker surety bond, it is important to know exactly what the requirements are. Originally set in the 1930s, the requirements were changed a few times, most recently in 1970. In 2012, the requirements were again reviewed and raised to $75,000, which essentially modernized the bond.
The process of getting a bond begins with registering your business with the FMCSA. The agency oversees regulations for intrastate and interstate commercial trucking, including the safe transport of hazardous materials. To register, you must identify the type of business you’re running, the type of cargo you’re shipping, and any other information related to your company. This can be done online via the Unified Registration System (URS).
Once you’ve registered with the FMCSA, your business will need a freight broker surety bond. These bonds protect both shippers and customers. In case of any disputes, surety agents will step in to settle the scores. A bond also allows freight brokers to make business deals with peace of mind.
Freight Broker Surety Bond – Get A Quote now
The application for a freight broker surety bond is easy and convenient. You can fill out the form online and submit it. After approval, you’ll be issued a certificate of bond coverage, and you’ll need to pay a yearly renewal fee. After your application is approved, you’ll receive an electronic filing confirmation from the FMCSA, and you’ll be able to see your active bond coverage online within 24 hours.
The cost of a freight broker bond varies, depending on the type of company you choose and the type of program you apply for. The cost of a freight broker bond will depend on the company you choose, the size of your business, and the amount of risk your business poses. In general, a freight broker bond costs approximately $75,000, although the amount of the premium will vary depending on your application.
Federal Motor Carrier Safety Administration (FMCSA)
A freight broker surety bond is required by the Federal Motor Carrier Safety Administration (FMCSA) as an additional measure of insurance for transportation brokers. The application for a freight broker surety bond requires a credit check and a financial review. Documentation demonstrating your business experience and financial strength will help you secure a competitive rate.
In October 2013, the FMSCA posted a new bond form. This bond form was only available to members of the Transportation Intermediaries Association (TIA) who are in good standing. Companies that don’t file a new bond may face penalties of up to $10,000 for operating without registration.
A Freight Broker Surety Bond is required by the FMCSA in order to operate as a broker. These bonds are typically issued by a company approved by the government. The bond company agrees to reimburse claims that result from the failure of a freight broker.
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