What is a South Dakota Freight Broker Bond?
The South Dakota Freight Broker Bond is evidence of financial dependability. It is a demonstration of access to fluid assets in meeting obligations and responding to potential claims.
It is also a guarantee that in the process of matching accredited and dependable transport carriers to shippers’ needs, the standards of ethical freight forwarding and brokering are strictly adhered to. The bond likewise serves as an assurance to clients and partners that the freight brokering company is suitably licensed by the Federal Motor Carrier Safety Administration.
In like manner, the bond represents a pledge that actions and transactions performed are all within the confines of the South Dakota Department of Transportation directives. It makes certain that the failure of freight brokers or forwarders to conform to the terms of the surety bond contract will give the right of other parties to file a claim against the bond.
Why do you need the South Dakota Freight Broker Bond?
You need a Freight Broker Bond because you care for your business and you want to protect it. As the bond will add legitimacy to your name, your company will be known as a trustworthy freight broker organization.
The bond can also make your company look very attractive to customers because they will naturally want to hire the services of a freight broker/forwarder that they can trust.
Most importantly, a Freight Broker Bond will assure you of the peace of mind you need knowing full well that if an employee conducts himself in an unethical manner, the aggrieved client or partner can demand financial damages without harming your business assets.
More details about the South Dakota Freight Broker Bond
Before getting bonded, freight brokers engaged in interstate business must apply for a broker authority from the Federal Motor Carrier Safety Administration using the Unified Registration System. You need to comply with the $300 application processing fee and wait for 4 to 6 weeks for processing.
Once bonded, your proof of surety must immediately be filed using the form BMC 84. On the other hand, proofs of an existing trust fund with a financial institution must likewise be filed using the form BMC 85.
What is the cost of a Freight Broker Bond?
The amount of your bond premium will depend greatly on your credit score and financial history. If you have problematic transactions in the past, you may be required to pay a higher premium.
The bond premium can also be influenced by your past business performance, personal profile, and standing within the business community. Being convicted of a crime even if it happened decades ago, also matters in the determination of how much you should pay.
How do I get the South Dakota Freight Broker Bond?
Getting a South Dakota Freight Broker Bond is simple. Contact a genuine surety bond practitioner for rapid processing and be afforded professional treatment. Choose the one who can provide you prompt and efficient service.