Is your broker bond coming up for renewal? You're not alone. According to Adam Green of Integro Insurance Brokers, around 90% of his freight broker customers renew their bonds on October 1, since that was the date the minimum bond requirement increased from $10,000 to $75,000 in 2013.
All freight brokers are required to have a bond, so before you simply automatically renew your current bond, you may want shop around to make sure you're getting the best rate.
What is a broker bond?
In order to maintain legal operating authority from U.S. Department of Transportion, all freight brokers must have a $75,000 surety bond or trust fund. If a freight broker does not live up to contracts with the shipper or carrier, funds from the bond or trust can be used to pay to them. With a surety bond, the broker does not have to set aside $75,000, but rather, pays a monthly fee to an insurance company that will cover the amount if a case is filed against the bond.
Advantages of the DAT broker bond
If you're a DAT customer, you may want to get a quote on the DAT Broker Bond. It has several advantages over other bonds, including:
- Discount for DAT Customers – Integro offers a special discounted rate for DAT customers to make premiums more affordable.
- Quick and easy application process - Qualified customers do not have to submit corporate financial statements, income statements or balance sheets.
- No Collateral Required – As a courtesy to DAT customers, Integro will waive collateral requirements for those who qualify.
- A-Rated Surety Bond – The DAT Broker Bond is offered through Integro, the nation’s eighth-largest private insurance brokerage. Integro has offices throughout North America. Integro’s surety bond is rated “A” (excellent) by A.M. Best.
Integro makes the application process as seamless as possible for DAT customers, according to Green. "Most customers can fill out the application in a matter of minutes, without digging up a lot of paperwork," he said.
To get a quote as a DAT customer, call Integro at 617-531-6270 or visit Integro’s DAT Broker Bond application page.