NEW PROGRAM FOR FMCSA HOUSEHOLD GOOD BROKER BOND
Since 1/1/2012, household good freight brokers have been required to post a $25,000 surety bond with the Federal Motor Carrier Safety Administration. The broker bond has been a firm requirement that must be on file with the FMCSA in order for an applicant to be issued a household goods broker license.
Due to a high volume of claim activity, freight broker bonds are considered to be riskier than other types of surety bonds. While few surety bond companies are willing to write the more common $10,000 BMC-84 Freight Broker Bond, even fewer are writing the new $25,000 Household Goods Broker Bond. Reason being, the bond amount is more than twice as large, and since it’s only been a requirement for a little more than a year, many surety companies do not have enough data on loss ratios to feel comfortable taking on the risk.
For years now, Lance Surety has been one of the only surety agencies aggressively writing $10,000 BMC-84 Bonds, and we proud to announce that we are now able to write the $25,000 Household Goods Broker Bond. We just launched a new program last week, so if you need this bond apply on our website or give us a call at 877-514-5146.