The October 1 deadline for the broker bond has come and gone, yet I'm still getting plenty of questions related to the bond. Here I address some of the most common questions.
Q: I’m still unclear on the deadlines for the $75,000 bond. Isn’t the FMSCA giving us additional time to get the bond?
A: Although MAP-21 became law Oct. 1, the FMCSA did issue a notice regarding its enforcement of the new $75,000 bond requirement. On Sept. 5, the agency announced:
FMCSA will be providing a 60-day phase-in period beginning October 1, 2013, to allow the industry to complete all necessary filings. Beginning November 1, 2013, FMCSA will mail notifications to all brokers and freight forwarders that have not met the $75,000 minimum financial security requirement. FMCSA will provide 30 days advance notice before revoking the freight forwarder and broker operating authority registrations.
For more information, read the complete text of the notice.
Q: Do I need to submit proof of my $75,000 bond to DAT in order to post loads on DAT’s load boards?
A: No. DAT does not need to see proof of your $75,000 bond. What is necessary is that you maintain your operating authority with the FMCSA. DAT’s policy has always been that freight brokers must have operating authority from the FMCSA in order to post loads on our load boards. That policy remains unchanged.
Q: I still don’t have a $75,000 bond. Is there anyone you can recommend?
A: Yes. In order to help our customers stay compliant with the new rule, we enlisted the help of a highly reputable surety bond company that has agreed to offer a special bond for DAT customers. The bond offers a very competitive premium and requires no collateral and no financial statements. Find out more about the DAT Bond Program.
Q: Is it too late for me to get a $75,000 bond? How long does the process take?
A: According to Integro Insurance Brokers, which is offering the special bond for DAT customers, its approval process only takes one to two days once the application documents are submitted to them online.
Q: After I get my bond, how do I submit it to the FMCSA?
A: The company that issues your bond submits the electronic filing to the FMCSA. They will use form BMC-84 for surety bonds or form BMC-85 for trust funds.
Categories: Broker News