75 K Surety Bond for Brokers

bubba-one said:
Anyone using ''International Sureties'' out of New Orleans for there bond. They are offering coverage for $750 usd for the year, through Aspen America Ins. Too good to be true or am I being ripped by my current agent for $3300 cdn
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Hi Bubba, these guys have been at it hard. Had a prospect reach out asking if this was legit. He was told the actually surety company was The Guarantee Company of N America which they denied quickly.

A lady named Linda was apparently helping them out?

I might call tomorrow and try to broker a deal to be the Canadian broker if legit. Huge opportunity, most bonds in Canada are $3,000 USD or trust fund at $900USD/quarter.

Where are you paying $3,300??
 
I received the same thing in the mail. Notice the asterix at the bottom :). This will be like the newspaper ads offering a new truck for 229/month *. It will end up being 2,500-3000 like all the rest,
 
loaders said:
According to an alert issued to day by the NTBA, International Sureties Ltd. of New Orleans, LA, does not appear on the FMCSA website as an authorized provider of sureties. The FMCSA link is...... https://www.fiscal.treasury.gov/surety-bonds/list-certified-companies.html#i. (hopefully I copied that correctly).
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Hi Loaders, they are the broker, not the insurer.

Aspen American Insurance is the surety company and i called to follow up with both the surety and broker.

I am brokering a deal so that you all can do business with a Canadian brokerage (if that’s of any value). Likely in the next month or two I’ll have access and will let those who are interested know where to find me.
 
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I have a quote valid for 60 days, an indemnity agreement from Aspen and an invoice for $750 from International Sureties, so far everything looks legit.
 
TRKINSURE said:
Hi Bubba, these guys have been at it hard. Had a prospect reach out asking if this was legit. He was told the actually surety company was The Guarantee Company of N America which they denied quickly.

A lady named Linda was apparently helping them out?

I might call tomorrow and try to broker a deal to be the Canadian broker if legit. Huge opportunity, most bonds in Canada are $3,000 USD or trust fund at $900USD/quarter.

Where are you paying $3,300??
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3300 with hst I think, thru broker and GCNA as surety
 
bubba-one said:
I have a quote valid for 60 days, an indemnity agreement from Aspen and an invoice for $750 from International Sureties, so far everything looks legit.
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Hi Bubba - read through it carefully. I spoke with the lady there, Linda from International Sureties. She did breeze over the fact that they are looking for personal indemnity.

Did you provide a SIN #? They did have options to not go after personal indemnity, I would gladly pay a couple hundred extra (over and above the $750) to not have to offer my personal assets in the event of a claim on the bond.
 
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lots of brokers doing less than 3.9 million a year.. probably most.. but who knows for sure. The bond itself represents that the broker's owner is at least financially viable... people with poor credit, no credit, no assets generally can't qualify. The bond at least is a seal of approval.. you've met the basic criteria and the owner hasn't been bankrupt.
 
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Freight Broker said:
lots of brokers doing less than 3.9 million a year.. probably most.. but who knows for sure. The bond itself represents that the broker's owner is at least financially viable... people with poor credit, no credit, no assets generally can't qualify. The bond at least is a seal of approval.. you've met the basic criteria and the owner hasn't been bankrupt.
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Good points but by the time they go bankrupt the carrier get squat. If they want it to have teeth a 1 million dollar bond. That will get rid of the wannabe's and pretenders.
 
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It would, but a million dollar bond requirement would also knock out alot of good people. What percentage of brokers have been in business for decades with a never a call on their bond? I don't know.. I don't know if there are even stats on that.
 
I am 2 years shy of my third decade in business and have never had a call on my bond. Agreed, a million dollar bond is unrealistic. Rarely do bankruptcies occur overnight without some sort of prior, tell tale clues. People must be diligent about checking the credit worthiness of any entity they extend credit to. A company that blindly allows an account to get further and further in arrears, should not be rewarded with a bailout from a large surety bond in the event of a bankruptcy. Keeping your accounts receivable as current as possible is the life blood of any company. Old receivables are harder to collect, more likely to be discounted, severely limit your potential for growth and can lead to a whole host of other serious problems within your own organization.
 
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