What is a North Dakota Freight Broker Bond?
When the Freight Broker Bond amount was raised to $75,000 in 2013, some brokers had to cease operations, especially those with lower financial reserves. However, there were still a good number of freight brokers who managed to deal with industry modifications and became the players of a more secure industry with better benchmarks.
As demand for brokers increased, income likewise grew. Freight brokering has now become a rock-solid industry with a gradually more sustainable growth since 2013. Because new industry players are entering the market every day, competition became tougher and stiffer. This is one huge reason why a freight broker business owner needs to procure a Freight Broker Bond.
The North Dakota Freight Broker Bond is a patent manifestation of financial capability and a categorical assertion to meet responsibilities and potential claims. It is likewise an assurance that in the conduct of one’s business, the values of reasonable, judicious, and ethical freight forwarding and brokering methods are strictly and thoroughly practiced.
The bond likewise serves as a warranty to clients and partners that the freight brokering company is suitably licensed by the Federal Motor Carrier Safety Administration. The bond is also a strong indicator that actions and transactions performed are in conformity with North Dakota’s laws and all other related regulations of freight brokering.
Why do you need a North Dakota Freight Broker Bond?
You need the North Dakota Freight Broker Bond because you want to stay in the industry for good. As the bond will add status to your name, your company will be known as a trustworthy freight broker organization in North Dakota.
Most importantly, a freight broker bond will assure you of the peace of mind you need knowing fully well that if someone in your employ commits any unethical act, the aggrieved client can demand damages without harming company investments.
More details about the North Dakota Freight Broker Bond
Before getting bonded, 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.
Once bonded, your proof of surety must be filed using Form BMC 84. On the other hand, proofs of an existing trust fund with a financial institution must likewise be filed using Form BMC 85.
How much does a North Dakota Freight Broker Bond cost?
The North Dakota Freight Broker Bond amount has been placed at $75,000 effective 2013. The bond premium rests on your previous financials and credit standing. It can also be impinged by past business performance, personal profile, standing within the business community, most especially in the surety bond industry. Being convicted of a crime, even if it happened decades ago, also matters in the determination of how much you should pay.
How do I get a North Dakota Freight Broker Bond?
Acquiring a North Dakota Freight Broker Bond is effortless. Get in touch with genuine professionals and give them a call now! With licensed surety bond practitioners taking care of your business, nothing can ever go wrong!