California Broker of Construction Trucking Services Bond
Find out why this surety bond is required and how to easily get one!
What is a California Broker of Construction Trucking Services Bond?
It is a legal promise made by the broker of construction trucking services regarding the fulfillment of his or her legal obligations. One of the broker’s obligations is to comply with Section 3322 of the California Civil Code.
In the said section, the broker of construction trucking services is required to “pay all transportation charges submitted by a motor carrier of property in dump truck equipment by the 25th day following the last day of the calendar month in which the transportation was performed” – as long as the necessary documents for the said charges are submitted on the 5th day following the last day of the calendar month.
The broker of construction trucking services is also required to comply with other laws, rules, and regulations that governs the business.
This requirement is mandated by Section 34510.5 of the California Vehicle Code.
How does a California Broker of Construction Trucking Services Bond work?
There are three parties to this bond:
Principal – broker of construction trucking services
Obligee – motor carrier of property in dump truck equipment
Surety – surety bond issuer
To ensure that the Principal will pay the claims of the Obligee on the specified time, the Obligee requires a guarantor. The guarantor will be the Surety. The Surety will ensure that the Obligee will be paid in case the Principal fails to pay the Obligee.
If a default happens, the Obligee will have to file a bond claim first. The claim will show all the important details about the default. The Surety will settle the claim only if the Principal fails to do so. Before the Surety pays the Obligee, the Surety will first perform an investigation of the claim.
Once the claim is verified, the Surety will make the necessary payments to the Obligee. As part of the agreement between the Principal and the Surety, the Principal must reimburse the Surety of all the payments made by the latter.
How much does a California Broker of Construction Trucking Services Bond cost??
The bond premium will vary per broker of construction trucking services. This will range from 1% to 8% of the bond amount – depending on the broker of construction trucking services’ credit score.
The bond amount will not be less than $15,000.
Check out what you need to pay by getting your FREE SURETY BOND QUOTE HERE!
How can I obtain a California Broker of Construction Trucking Services Bond?
STEP 1: Apply for this bond
If you’re ready to apply now, you may do so HERE!
STEP 2: Underwriting
Our licensed underwriter will check a couple of information to verify your financial history, business performance history, and your credit score.
STEP 3: Bond execution
After you’ve signed the indemnity agreement, we will immediately issue the bond and send it to you!
Ready to apply? START HERE!