California Motor Transportation Brokers’ Bond
The financial protection tool you need for your business!
What is a California Motor Transportation Brokers’ Bond?
The Public Utilities Commission of the State of California requires every person who is applying for a motor transportation broker license to obtain this bond.
The purpose of this bond is to ensure that all transportation charges received by the motor transportation broker will be given to the appropriate motor carrier on time and in full.
This bond will provide compensation to anyone who will be harmed by the non-compliance of the licensed motor transportation broker to the provisions of the Motor Transportation Brokers’ Act (Chapter 5 of, Division 2 of the California Public Utilities Code). In addition, this bond will cover any act committed by the licensee that is against the conditions of his or her license as well.
How much does a California Motor Transportation Brokers’ Bond cost?
The bond premium will depend on the motor transportation broker’s credit score.
Those who have excellent credit scores will be eligible to pay as low as 1.5% of the bond amount.
The bond amount is $15,000.
Get your FREE SURETY BOND QUOTE HERE in order to know your bond premium!
How can I get a California Motor Transportation Brokers’ Bond?
We’ve made the process easier so that you can get your license and start your business faster.
Just follow these simple steps on how to get this bond below:
Step 1: The first thing that you have to do is to APPLY FOR THIS BOND HERE!
Step 2: Your application will immediately be processed once we have received it. We will contact you if we need further information or if you need to submit documents needed for the prequalification process. The following will be checked during the prequalification process:
- Your financial capability
- Your business or job performance history
- Your credit score
Our expert underwriter will carefully evaluate all three in order to attain the best credit decision possible. To avoid any delay, the information that you should submit should be organized and concise.
Step 3: Your surety bond will be issued and sent to you after the indemnity agreement is signed.
How does a California Motor Transportation Brokers’ Bond work?
This bond is not an insurance, but rather an extension of credit provided by the Surety (surety bond provider) to the Principal (motor transportation broker).
The Principal and the Surety will partner in assuring the performance of the former to the Obligee (People of the State of California). The Principal is primarily responsible for the fulfillment of the obligations required by the Obligee. If the Principal fails to do any of the bonded obligations required by the relevant laws, rules, and regulations, the Obligee can file a bond claim.
The claim will first be verified by the Surety before it is settled. Once the Surety has settled the claim, the Principal will reimburse the Surety for the payments made.
Secure your license! APPLY HERE!