What is a freight broker surety bond?
Freight Broker Bond. A freight broker bond is a type of surety bond that freight brokers must obtain to get or renew a license. The freight broker surety bond requirement exists to help establish credibility and prevent fraud or failure to pay motor carriers or shippers in a timely manner.
How much should my surety bond be?
On average, the cost for a surety bond falls somewhere between 1% and 15% of the bond amount. That means you may be charged between $100 and $1,500 to buy a $10,000 bond policy. Most premium amounts are based on your application and credit health, but there are some bond policies that are written freely.
How much is a surety bond for 50000?
Surety Bond Cost Table
| Surety Bond Amount | Yearly Premium | |
|---|---|---|
| Excellent Credit (675 and above) | Average Credit (600-675) | |
| $50,000 | $500 – $1,500 | $1,500 – $2,500 |
| $75,000 | $750 – $2,250 | $2,250 – $3,750 |
| $100,000 | $1,000 – $3,000 | $3,000 – $5,000 |
Is it hard to get a freight broker bond?
Additionally, the federal freight broker bond is also harder to obtain than other bond types. Approval for the bond is based on the individual applicant’s background among other factors since there is a higher degree of risk associated with the freight brokerage industry.
How much is a 75k freight broker bond?
How much does a Freight Broker Bond cost?
| Bond Type | Bond Amount | Cost* |
|---|---|---|
| $75,000 Freight Broker Bond (BMC-84) | $75,000 | Starts at $938 |
Do you get money back from a surety bond?
If you opt to purchase a surety bond, you would pay a surety company to write that bond for you. If you buy a surety bond, you cannot cash it out once the bond is exonerated or “released from the court”. You also do not receive back the money you paid for it.
How long is a surety bond good for?
Most bonds are quoted at a 1-year term, but some are quoted at a 2-year or 3-year term. For example, if you are quoted for a surety bond at $100, you will need to pay $100 for your bond. But, you do not need to pay $100 per month to maintain your bond.
How much does a 75k broker bond cost?
How much does a 75k surety bond cost?
This means, a $75,000 surety bond will cost a good credit applicant somewhere between $562 and $1,875. For a bad credit applicant the cost will be in the range between $1,875 and $7,500.
Do you need a surety bond to be a freight broker?
In order to issue a freight broker license, the FMCSA requires all freight brokers and freight forwarders to file either a surety bond (BMC-84) or a trust fund agreement (BMC-85).
Who is the best company for surety bonds?
Lance Surety Bond Associates, Inc. is a Pennsylvania-based surety bond agency that offers bonding at competitive rates in all 50 states. Established in 2010, our company has grown to become one of the top online bond producers in the country.
Do you need a MC number for a surety bond?
No. You can apply for this bond before being assigned an MC Number. However, the surety company will need an active MC Number in order to properly file your bond with the FMCSA.
Do you need a BMC-84 Freight Broker Bond?
The BMC-84 Freight Broker Bond is necessary for operating as a licensed freight broker or freight forwarder in the United States. This regulation is required by the Federal Motor Carrier Safety Administration (FMCSA).