Surety On The Rocks

Written by JoAnn Smith on March 26th, 2015. Posted in Freight Broker Bonds (ICC Bonds), On The Rocks, Surety Bond Blog

Freight Broker Surety Bond

All freight brokers and carriers are required by law to carry a surety bond or trust fund in the amount of $75,000. BuySurety.com has specific expertise in these broker bonds and federal regulations. Please call us Toll Free 800-600-9240  or apply online www.buysurety.com for your surety bond quote. These surety bonds are also known as Property Broker Bonds or ICC Bonds (Interstate Commerce Commission), BMC-84 Bond, and Truck Broker Bonds.

Honest Broker

Drink Type: Martini

Ingredients

1 part(s) Broker’s London Dry Gin 1 part(s) Brown Creme de Cacao 1 dash(es) Butterscotch Schnapps 1 part(s) Kahlua 1 part(s) Green Creme de Menthe 2 part(s) Double Cream

Instructions

Stir first 4 ingredients together over ice and strain into a martini glass. Stir the cream and menthe together and float onto the Broker’s mixture. Garnish with chocolate curls.three drinks Enjoy.
 

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New York Bill Would Require Insurance Fund Bond for Oil Carriers

Written by JoAnn Smith on June 23rd, 2014. Posted in Commercial Bonds, Freight Broker Bonds (ICC Bonds), New York, Surety Bond Blog, Warehousing Bonds

     insurance fund bond      
Disasters like this are covered by an insurance fund bond
With the memory of the recent disaster in Quebec still fresh in many minds, lawmakers in Albany New York have introduced a bill that would require all petroleum bulk storage facilities as well as any company transporting such materials to have sufficient insurance fund bond coverage.
 
While it cannot avert a disaster like the one in Quebec it could assure that taxpayers were not left holding the bill after the dust settled. The amount of coverage that would be required has been increased that would cover all decontamination and cleanup after such a crises.

Covering the Cost of Disaster

As more cities are seeing an increase in the amount of rail traffic that includes dangerous and toxic material travelling through highly populated areas, an increased need for some assurance that the high costs of recovery will be handled by the companies responsible. This is why the recent Assembly Bill 9926 was introduced in the New York Assembly. This bill will increase the amount of the required insurance fund bond that all companies must have if they store petroleum products in bulk storage facilities.

A Surety to Cover All Contingencies

Whether you are a company that moves dangerous materials or a truck broker that moves goods of all kinds, having the right surety bond coverage is an important part of business. With new laws coming into play each year, it is important to stay on top of the latest regulations in any business that deals with dangerous goods. You can find out the latest news on this blog or ask our informative and friendly BuySuretycustomer service staff about your surety bond coverage. From insurance fund bond coverage to basic license bonds, we can help your company find the surety bond you need today.

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Will New Brokers Bond Requirements Improve the Industry?

Written by JoAnn Smith on April 26th, 2014. Posted in Bond Types, Commercial Bonds, Freight Broker Bonds (ICC Bonds), Latest News, Surety Bond Blog

     brokers bonds, broker bond requirements      
Truck brokerage industry get new requirements
Truck brokers have seen it all, and some have even survived to tell the tale. With the industry renown for corruption and fraud, can the new brokers bond requirements separate the honest brokers from the bad seeds? These are the ones that have historically used the nature of the business to defraud the small trucking firms that are the backbone of the industry.
 
Some say yes, and are betting on it by staying in a business that is being hit by higher gas prices, increasingly poor roads and now a boost in broker bonds from $10,000 a year to $75,000. But many in the truck broker industry say it is about time.

Finding Honest 3PL Brokers

In an industry that is dominated by a handful of companies, the vast majority of the 500,000 truckers are small operations with between 5-6 trucks according to the Transportation Intermediaries Association (TIA). These companies often see themselves squeezed by truck brokers, companies that connect a business needing a truck to transport their goods with one of the thousands of trucking firms throughout the country. Because the truck broker gets paid immediately by the company looking to ship the goods, but only pays the trucker once the job is completed, he can in essence take from Peter to pay Paul. And that is where the problems begin.
 
It can be tempting to use the money already paid for yourself. Some brokers have been known to brush off requests for payment or demand a cut of the price in return for paying truckers what they are owed. This is where the brokers bonds come into play, as a guarantee of payment to truckers for work completed through the broker. But a $10,000 broker bond requirement doesn’t go very far if a broker has a bad spell or decides to stop paying. Two shipments of $7,000 each through a previously solid broker suddenly playing fast and loose with their money can leave the second trucker high and dry. For many of these smaller trucking firms, it can jeopardize their business or even their truck.

First Generation Americans Hit Hardest

Because so many of the trucking firms that have the least ability to negotiate with brokers are small companies, 97.2% have 20 vehicles or less according to TSA, this increase in the brokers bond requirements couldn’t have come at a better time. Money is tight, costs are up and with many of these smaller companies comprised of immigrants or first generation Americans looking for a finger hold into the American Dream, they either don’t know how to bring a broker who doesn’t pay to court, or are the “last in line” when a broker goes bankrupt. The increase means that more of the small truckers who have no leverage with a truck broker have more hope of collecting on deliveries completed but unpaid.

Broker Bonds Protect Honest Brokers Too

While some may think the increased broker bond requirements are a hardship for the truck brokerage industry, the major players so it makes everyone more honest. Unscrupulous brokers who can’t or don’t want to pay the increased cost for a broker bond may simply move on to another racket. This leaves the field open for those honest brokers who know that an increase in broker bond requirements is simply the cost of doing business.
 
Not sure where to go for your new broker bond requirements? BuySurety has been providing truck brokers with reasonably priced broker bonds quickly for over two decades. Find out just how fast and easy it is to make sure all your bond requirements, whether you need a broker bond for your truck brokerage company or a Carrier Bond as a trucker with your own truck. BuySurety can help every player in the trucking business to stay legal and keep on trucking.

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Freight Brokers – Are Your Brokerage Bonds in compliance with New Guidelines?

Written by JoAnn Smith on October 7th, 2013. Posted in Commercial Bonds, Freight Broker Bonds (ICC Bonds), Latest News, Legislation, Surety Bond Blog

     brokerage bonds
Freight brokerage gets new protection
New guidelines have been announced that will increase the amount of brokerage surety bonds required by freight brokers, as well as change several key regulations. The announced changes will have a big impact on freight brokers, particularly small companies. One of the biggest changes will be the requirement for all freight brokers and forwarding services to carry $75,000 in broker surety bonds. The deadline for compliance with this change is October 1, 2013 with a two month grace period. Brokers not in compliance by November 1st will receive a warning letter. If they still are not in compliance by the beginning of December their operating license will be suspended until they do what is needed to be compliant.

Changes Beyond Brokerage Bonds

But the change of the requirement for a posting of a broker surety bond from $10,000 to $75,000 is not the only difference many brokers will see with this new set of rules. There are a number of substantial changes that will be coming with this ruling including:
  • No more “double-brokering” – This is where truckers take procession of another truckers freight directly
  • Truckers cannot broker freight without a broker’s license
  • Brokerage must be a separate entity from a trucking company; a broker cannot appear on bill of lading as the carrier
  • The name on a bill of lading must be the same name as the trucking company picking up at the dock
  • If they do not match – shipper must fill out new bill with new name and ID# and pay new carrier
  • Cargo must be accepted by trucker’s own equipment
  • Carrier’s policy must cover the load and the broker’s policy can only used as coverage in a contingency
  • “Interlining” will continue to be allowed, but the freight must be picked up by the trucker of origin
In addition, if a company has both freight and broker authority they will only be required to post one surety bond. This is contingent on the company holding both certificates. But, the company will still be required to file each of the forms separately for both broker and freight forwarder.

The Future of Small Truckers in Question

Although many see these changes as a way to ensure that regulations regarding the roles of brokers and freight forwarders are clearly stated, not everyone is happy with these changes. Many hope that this will control the practice of “churning”, where truckers without brokerage authority take shipments on a load board, take an advance payment, hand the load off to a second carrier and then disappear with the payment leaving the second trucker out of luck. However, for the smaller trucking companies this increased surety bond may in the end drive them out of the business entirely. Do you have the right brokerage bonds for your company? Call our helpful customer service line if you have questions about surety bonds, including the latest requirements for brokerage bonds. We can help you stay compliant and keep rolling with surety bonds no matter what your credit risk. Contact BuySurety today for a quote.

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Freight Brokerage Firm Announces Increased Surety Bond Minimums

Written by JoAnn Smith on April 16th, 2013. Posted in Freight Broker Bonds (ICC Bonds)

     freight brokerage surety bonds
Freight broker surety bonds cover all types of freight brokerage
April 16, 2013 – One of the countries tip freight logistics companies has announced they will be increasing their surety bonds for freight brokers from the current $10,000 to a new $250,000 surety bond amount. The announcement from Cerasis is a reflection of the freight industries move to protect its customers from fraudulent practices within the industry. In 2012 the House and Senate passed the Highway Re-authorization Deal that would increase minimum bond requirements for the transportation industry. The intent was to discourage underfunded businesses that had been giving the industry a bad reputation. With the passage of this new deal, many companies that had been offering freight broker bonds would be required to increase their surety bond amounts to reflect these new regulations.

Transportation Intermediaries Association Certification Program

A recent announcement from Cerasis about the increased surety bond amounts will also confirm their qualification for being “TIA Performance Certified”. This certification is provided by the Transportation Intermediaries Association to help discourage underfunded companies and highlight the best business practices of the members who qualify for the recognition through this certification. Increased surety bond coverage is one of the qualifications to receive the TIA Certification. With less than 1% of the brokers, freight forwarders and other 3PLs in the transportation industry able to qualify for the certification, it is hoped that this announcement will encourage others in the industry to increase their surety bond coverage and qualify.

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