What is a Montana Freight Broker Bond?
The Freight Broker Bond is required by the Federal Motor Carrier Safety Administration (FMCSA), by Title 49 §13906 of the United States Code for those individuals who will be registering as a freight broker in Montana.
It is stated in the section as mentioned above 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 surety bond cost?
The Freight Broker Bond amount is $75,000. If you have an excellent credit score, you may be eligible to pay a very low bond premium or less than 1% of the total bond amount!
Find out the amount that you need to pay for a Freight Broker Bond today!
What are the surety bond conditions?
- The bond will remain valid until canceled. In case of cancellation, a 30-day notice is required
- 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 Bond will be used to pay any claim made against the freight broker from the freight broker’s failure to pay freight charges stated in its contract
- 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
How do I secure a Freight Broker Bond?
First Step: Submit an Application Form and make sure to fill out all the required fields.
Second Step: Afterwards, an expert underwriter will start with the prequalification process.
The underwriter will check if you have performed your obligations on time in the past, your credit score, other relevant information, and financial capability.
Third Step: 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 you’re already 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:
- Broker of Household Goods
- Motor Common Carrier of Household Goods
- United States-based Enterprise Carrier of International Cargo (except Household Goods)
- Motor Contract Carrier of Property (except Household Goods)
- United States-based Enterprise Carrier of International Household Goods
- Broker of Property (except Household Goods)
- Motor Contract Carrier of Household Goods
- Motor Common Carrier of Property (except Household Goods)
4-6 weeks is the processing time. Once approved, you will get your MC number or Operating Authority.
Are you in need of this Surety Bond? Contact us HERE today!