As most of you are aware, the federal government’s Moving Ahead for Progress in the 21st Century Act (MAP-21) requires freight brokers and freight forwarders to have a $75,000 bond or trust fund — up from the current requirement of $10,000.
MAP-21 takes effect Oct. 1. However, the Federal Motor Carrier Safety Administration (FMCSA) recently announced that there will be a 60-day phase-in period for enforcement of the bond requirement. That will allow brokers a little extra time to secure a bond and allow bond providers time to file the necessary documents with the FMCSA. (See our blog post about the phase-in period.)
To help DAT customers stay compliant with the $75,000 bond/trust requirement, we’ve enlisted the assistance of Integro Insurance Brokers. Integro is the nation’s sixth largest private insurance brokerage with 11 U.S. offices, 3 in Canada and 3 overseas.
Exclusively for DAT customers, Integro is offering a $75,000 surety bond at a special price. The bond includes a competitive premium with no program initiation fees, no collateral, and no financial statements required for those who qualify. The bond is rated “A” (Excellent) by the insurance rating agency A.M. Best.
Annual premiums for the bond start as low as $3,000 with satisfactory TransCredit scores. Requirements to qualify for the bond include:
• Must be a DAT customer.
• TransCredit score of 85 or higher. (Brokers in business less than two years must have a personal credit score of 650 or higher with no bankruptcies.)
• TransCredit days-to-pay of 30 or fewer.
• Maintenance of property broker license with the Federal Motor Carrier Safety Administration (FMCSA).
Customers who do not meet these requirements may still qualify for a $75,000 surety bond from Integro. However, additional documentation and/or collateral may be required.
For those who qualify, Integro requires a minimal amount of documentation. Only four forms are required:
1. Integro application form.
2. Evidence of Errors & Omissions or Contingent Cargo insurance.
3. General Indemnity Agreement.
4. Signature Authorization/Terms and Conditions Acceptance Page.
If you would like to apply for the DAT bond program, please visit DATbonds.com.
Categories: DAT Product News