The FMCSA has stated it will not allow freight brokers to legally operate without a freight broker bond or trust in place. Because of the confusion surrounding the 60-day grace period for satisfying the $75K requirement which went into effect Oct. 1st, many brokers continue to operate without a surety bond or trust. This puts anyone doing business with them in financial danger.
Dangers of Working with Unbonded Brokers
Freight brokers are required to obtain a surety bond in order to obtain a license and operate legally. The bond guarantees the broker will follow all regulations in place, and that payments to shippers and carriers will be made. With no bond in place, it’s impossible to file a claim and be reimbursed for misconduct or fraud committed by freight brokers.
How Do I Know Which Brokers Are Safe to Work With?
In order to protect your interests you must perform your due diligence. You can visit the FMCSA website and verify whether freight brokers are meeting all licensing requirements. To do so, you’ll need to check the broker’s license record. When the information is pulled up, click the button under “View Details” (either the HTML or Report button). You’ll want to look for “ACTIVE” under the Authority Status column, and “YES” under Insurance on File column. If the broker’s record reflects these, it means they have the financial security of either a bond or trust.
You can even go a couple of steps further and determine the amount of financial security in place ($10K or $75K) and the expiration date by clicking the “Active/Pending Insurance” link at the bottom of the page. Once you’re on that page, you can also click the name of the company who provided the bond/trust and obtain their contact information, allowing you to check for any outstanding claims.
Still Need to Get $75K Compliant?
JW Surety Bonds has an exclusive bond program for the $75,000 freight broker bond:
• A rated, Treasury-listed surety
• No collateral
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• Approvals regardless of credit strength
• 99.9% approval rate
Get compliant now. Apply directly on our website to get an instant approval.