Truckers and Travelers

Hello, Fellow Drivers,

It’s been a while since I wrote to you.  Today I wanted to share an article written by a company that offers bonds for brokers of all kinds.  When you get trucking authority, you will need to check on the FMCSA website to see if you will need a surety bond to proceed in the trucking business.  Below is a short article written by one company that offers bonds to truck brokers, specifically freight brokers.  These are the people who find the loads for drivers and dispatches them accordingly.  Enjoy the read and remember to be safe out there!

Freight Broker Bonds
 
Like a host of other industries, freight brokers are required to obtain legitimate bonding before they can legally operate.
 
The Federal Motor Carrier Safety Administration (FMCSA),  www.fmcsa.dot.gov/,  mandates that brokers acquire these risk-mitigation tools to help protect consumers, state interests and freight companies. These bonds may also be referred to as BMC-84 Bonds, ICC Bonds or property brokers surety bonds. The FMCSA does have an exemption that allows brokers to possess a BMC-85 trust fund instead of the traditional freight broker bond.
 
How They Work
In essence, surety bonds are three-party agreements between a principal (the entity needing the bond), the obligee (the project owner or recipient of the work, often the state) and the surety, a neutral third party that guarantees the company will fulfill its obligations. These bonds are not to be confused www.suretybonds.com/insurance.html.
 
A freight broker bond provides a guarantee that all applicable laws and regulations will be followed. It also provides an avenue of recourse and financial compensation if a broker fails to fulfill its duties or engages in illicit or illegal activity.
 
Consumers or other injured parties can file a claim against the bond. If the claim is ultimately deemed valid bond company that issued the bond ensures compensation is provided.
 
How to Obtain Them
The market for freight broker bonds remains volatile after several years of frequent bond claims. In many states, these are considered high-risk bonds that may require significant collateral. There is a high-risk market for these bonds, and applicants should expect to pay higher rates and provide 100 percent collateral.