What is a New Mexico Freight Broker Bond?
The New Mexico Freight Broker Bond is proof of financial responsibility and liquidity. It is a demonstration of access to liquid assets in meeting obligations and responding to potential claims. It is also a guarantee that when 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.
Furthermore, a Freight Broker Bond represents a pledge that actions and transactions performed are all within the confines of the New Mexico 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 New Mexico Freight Broker Bond?
You need the New Mexico Freight Broker Bond because you care for your business and you want to protect it. As the bond will add status 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 fully 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 New Mexico Freight Broker Bond
Before getting the bond, 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.
As soon as you have the bond, your proof of surety must immediately be filed using form BMC 84. On the other hand, proofs of an existing trust fund with a financial institution must likewise be submitted using the form BMC 85.
What is the cost of a New Mexico Freight Broker Bond?
The New Mexico Freight Broker Bond is for $75,000.The amount of the bond premium will depend greatly on the broker’s credit score and financial history. If the forwarder/broker has problematic transactions in the past, he/she may be required to pay a higher premium.
The bond premium can also be influenced by a forwarder’s/broker’s 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 a freight broker should pay.
How do I get a New Mexico Freight Broker Bond?
Getting the Freight Broker Bond is simple. Be sure to contact only legitimate professionals in the field of surety. Give these surety specialists a call now! With these proficient surety practitioners taking care of your business affairs, you will have the answers you need and the solution to whatever concerns you have in protecting your business.