Broker bond

[youngtea]

I need help on this. It is now my second year in business and I have been attempting to get a broker bond for $75,000 USD.

For those that were able to get a broker bond as a new or young broker who did you go to? I have a handful of customers that want to use my services, but I am not able to get the bond yet.

The two companies I have tried needed me to be in business for longer than two years.

Any help is appreciated.

 

[Freight Broker]

Contact Internet Truckstop at 800-203-2540. They set me up with Alternative Insurance Co. who provide the 75K bond. Prior to that I was with Guarantee Insurance. I switched when the bond went from 10K to 75K because Guarantee wasn't sure if they were going to stay in the broker bond market. They have since decided to provide the 75 K bond as well. I've also heard positive things about the bond the TIA provides.. Regardless of which route you take, the key to getting the bond is your personal creditworthiness and net worth.

 

[loaders]

If your firm is fairly new and/or you don't have retained earnings of at least 75K, the bonding company will want to see your personal finances as Freightbroker mentioned. In other words, if your company doesn't have the financial resources, they look to the company principals.

 

[youngtea]

Contact Internet Truckstop at 800-203-2540. They set me up with Alternative Insurance Co. who provide the 75K bond. Prior to that I was with Guarantee Insurance. I switched when the bond went from 10K to 75K because Guarantee wasn't sure if they were going to stay in the broker bond market. They have since decided to provide the 75 K bond as well. I've also heard positive things about the bond the TIA provides.. Regardless of which route you take, the key to getting the bond is your personal creditworthiness and net worth.

Thanks. I will call them tomorrow and get details. Apprecaite your help.

 

[Freight Broker]

Were they able to help you out Youngtea?

 

[theman]

It's not retained earnings ... it's market capitalization that they're talking about. The whole point of the bond was to bring the point of entry into the industry higher in the hopes of reducing 'fly-by-night' activity. As loaders says, if there isn't market cap in the company itself, they look to secure it with assets ... anyone who doesn't would put a much larger premium on the bond.

 

[youngtea]

I am actually calling them this afternoon. Will let you know when I find out.

Thanks

 

[jonny-chicken]

Has anyone successfully filed against a US broker's bond?

I am looking into this today, thinking I will have to file against the bond for Network FOB due to non-payment.

Thanks!

 

[theman]

The $75K bond requirement is a FMCSA requirement. So it would be no different to claim against a Canadian company's broker bond versus an American one. Though I've never done either one.

 

[jonny-chicken]

Thank you sir. I just looked it up and it's quite a simple process.

I was able to find out who their bond holder is by searching them at the fmcsa website.

I called the bond holder and was given instructions to send an email to get the process started.

Nice and easy, we'll see where this leads...