{"id":47013,"date":"2018-10-13T08:32:47","date_gmt":"2018-10-13T08:32:47","guid":{"rendered":"https:\/\/nationwideautotransportation.com\/?p=47013"},"modified":"2024-01-17T12:48:13","modified_gmt":"2024-01-17T12:48:13","slug":"freight-broker-bond","status":"publish","type":"post","link":"https:\/\/nationwideautotransportation.com\/blog\/freight-broker-bond\/","title":{"rendered":"What is a Freight Broker Bond | Why do You Need it?"},"content":{"rendered":"Reading Time: <\/span> 3<\/span> minutes<\/span><\/span>\n

The fluctuating economy often doesn’t affect the trucking industry<\/span> as more than 70 percent of the nation’s goods are transported by truck. If you’re already in the trucking industry it might seem like a good idea to start a freight brokerage. One thing you can’t overlook when doing so is a freight broker bond. What is a freight broker bond<\/span>? What do you need to do to secure one for your new brokerage company?<\/span><\/p>\n\n\n\n

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Understanding Freight Broker Bonds<\/b><\/h1>\n\n\n\n

First, why do you need a freight broker bond?<\/span><\/p>\n\n\n\n

They can be complicated to explain, but in essence, they are an insurance policy for your customers. There are three parties involved in a freight brokerage bond.<\/span> They are your company, the bond agency that handles your bond, and the federal government.<\/span><\/p>\n\n\n

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You’re legally required to carry this a bond to run a brokerage business. It gives you a bit of a cushion to fall back on if you can’t fulfill your contracts. That’s why it’s so crucial to have one of these bonds in your back pocket.<\/span> If your fleet catches fire and it prevents you from meeting your delivery deadlines<\/span>. Your client doesn’t get their goods on time, you haven’t fulfilled your contract, and you won’t get paid. A brokerage bond allows you to still have the funds to pay your drivers and keep everything rolling.<\/span><\/p>\n\n\n\n

It is a requirement to run a brokerage business, but it won’t protect you if you’re frequently unable to keep up with your deadlines or fail to fulfill your contracts. It’s more of a security blanket in a worst-case scenario. <\/span><\/p>\n\n\n\n

How to Get a Freight Broker Bond<\/b><\/h2>\n\n\n\n

What do you need to get a broker bond for your freight business? Other than decent credit, you will need:<\/span><\/p>\n\n\n\n