Freight Broker Bond (FMCSA)
Freight Broker Bond (FMCSA) Information
Federal Motor Carrier Safety Administration (FMCSA) regulate Freight Brokers through the Freight Broker Bond requirement. The bond demonstrates financial responsibility of a broker, guaranteeing payment to shippers and motor carriers if a broker fails to comply with its contracts and agreements.
Property brokers and freight forwarders have been required to post the increased $75,000 bond since Oct 1, 2013. Brokers that do not comply with the new bond requirement may have their broker authority revoked by the Federal Motor Carrier Safety Administration.New freight brokers need to register with the FMCSA in order to obtain the freight broker authority. Once registered, you’ll need to get a freight broker bond (BMC-84) from a surety bond company and ensure your bond gets electronically filed with the FMCSA.
Listed below are the 3 absolutes in surety.
- Most be a US Citizen
- Cannot be in current bankruptcy
- Cannot be behind in child support
Over 125 years of combined experience
As a surety bond broker, we work for YOU not the surety company. We are licensed nationwide and appointed by 25 surety companies so that we are able to offer the best solution for all surety bond needs. We are a small organization that strives to make you feel like part of our family.
Working with trusted insurance companies
Three party agreement
Surety Bond Definition: The definition of a surety bond is as follows: A surety bond is a binding agreement between three parties. This agreement sets forth a financial guarantee by one party ( “surety” ) to another party ( “obligee” ) that a third party ( “principal” ) will fulfill required obligations to the obligee, and that state, federal, and local laws and applicable regulations will be adhered to. Let’s examine each of the three parties.Learn more about surety bonds
Bad Credit – Fast Approvals – Lowest Rates Available.
- Credit below 650 and/or have blemishes on credit report.
- Average cost is 5-15% of the bond amount.
- Available for all commercial bonds.
Why does credit matter? Applying for a surety bond is similar to applying for a loan. You are asking a surety company to back you financially. Reviewing credit is the best method for the surety to understand their risk. All sureties review credit as a view only and should have no effect on your credit score. While it is true that bad credit makes it harder to obtain a competitive quote, we are committed to making sure all of our customers have access to the best possible rates. While we can’t guarantee that we can provide a bond for the most extreme bad credit situations, we strive to make sure no stone is unturned! In other words, if you are insurable, we will get it written. Contact us today and let us put together an online quote for you that will exceed your expectations.