What is a Colorado Freight Broker Bond?
Get registered as a Freight Broker by getting bonded!
Are you thinking about starting a freight broker business in Colorado? If so, you’re in the right site!
To become one, you need to furnish a surety bond.
The Freight Broker Bond is not just a requirement to get registered in the state of Colorado. It is a federal statute.
The rules and regulations of the Federal Motor Carrier Safety Administration (FMCSA), by Title 49 §13906 of the United States Code, states that the Secretary can enforce a surety bond to freight brokers to ensure the following:
- To financially protect the passengers of the freight brokers
- To financially safeguard the carriers of the freight brokers
What is the bond amount?
The Freight Broker Bond amount is $75,000.
If the freight broker’s credit score is excellent, he can pay a surety bond premium that is less than 1% of the total bond amount!
Find out yours today! Get your FREE quote here!
What are the bond conditions?
- The bond should be issued by a surety bond company who is authorized by the Secretary of Treasury such as Surety Bond Authority
- The bond will ensure financial responsibility and the supplying of transportation subject to the ICC Termination Act of 1995
- The Principal shall comply with the rules and regulations of the Federal Motor Carrier Safety Administration
- The Principal will be held liable for any damages committed during the term of the bond
- The Principal shall pay motor carriers or shippers for failure to perform its duties or carry out any contracts
- The bond will remain valid until canceled. In case of cancellation, a 30-day notice is required
How do I obtain a Freight Broker Bond?
You can submit an application for the said bond.
An expert underwriter will start with the prequalification process soon after. The underwriter will check if you have performed your obligations on time in the past, your financial capability, credit score, and other relevant information.
Once qualified, you will be asked to sign an indemnity agreement. We will complete the BMC-84 or Freight Broker Bond form for you, and that’s it! You’re bonded!
What are the other requirements to be registered as a Freight Broker?
- Completed Motor Property Carrier and Broker Authority application form OP-1
- Pay the necessary processing fee of $300 per Operating Authority such as the following:
- Motor Common Carrier of Property (except Household Goods)
- Motor Contract Carrier of Property (except Household Goods)
- Motor Common Carrier of Household Goods
- Motor Contract Carrier of Household Goods
- Broker of Property (except Household Goods)
- Broker of Household Goods
- United States-based Enterprise Carrier of International Cargo (except Household Goods)
- United States-based Enterprise Carrier of International Household Goods
The processing time will be 4-6 weeks. Once approved, you will get your MC number or Operating Authority.
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