How to File on Surety Bond If a Broker is not paying.

Jul 19, 2024 at 11:45 AM CST + 1
Posted by a private BulkLoads.com member.	Posted by a private BulkLoads.com member. Steps to File a Claim on a Freight Broker Surety Bond Determine When to File: Ensure the broker has not paid within the contracted time and is unresponsive to your collection efforts. Payment terms can vary, so check your contract for specifics (e.g., 30, 60, or 90 days after delivery). Verify Coverage: Confirm that the load is covered by surety regulations. Note that intrastate loads and certain exempt commodities (like fresh produce) may not be covered. Find the Broker’s Surety Provider: Visit the FMCSA’s SAFER website and enter the broker’s DOT number, MC number, or name to find their surety provider. Gather Documentation: Collect all necessary documents, including the bill of lading, rate confirmation, proof of delivery, and any communication records with the broker. Contact the Surety Company: Reach out to the surety company that issued the bond. They will provide you with the claim forms and instructions. Submit the Claim: Complete the claim forms and submit them along with your documentation to the surety company. Be thorough and accurate to avoid delays. Follow Up: Stay in touch with the surety company to track the progress of your claim. They will investigate and determine the validity of your claim.

Jul 19, 2024 at 11:45 AM CST

+ 1

Posted by a private BulkLoads.com member.

Steps to File a Claim on a Freight Broker Surety Bond

Determine When to File:
- Ensure the broker has not paid within the contracted time and is unresponsive to your collection efforts. Payment terms can vary, so check your contract for specifics (e.g., 30, 60, or 90 days after delivery).
Verify Coverage:
- Confirm that the load is covered by surety regulations. Note that intrastate loads and certain exempt commodities (like fresh produce) may not be covered.
Find the Broker’s Surety Provider:
- Visit the FMCSA’s SAFER website and enter the broker’s DOT number, MC number, or name to find their surety provider.
Gather Documentation:
- Collect all necessary documents, including the bill of lading, rate confirmation, proof of delivery, and any communication records with the broker.
Contact the Surety Company:
- Reach out to the surety company that issued the bond. They will provide you with the claim forms and instructions.
Submit the Claim:
- Complete the claim forms and submit them along with your documentation to the surety company. Be thorough and accurate to avoid delays.
Follow Up:
- Stay in touch with the surety company to track the progress of your claim. They will investigate and determine the validity of your claim.

Replied on Sat, Jul 20, 2024 at 07:55 AM CST + 1
Posted by a private BulkLoads.com member.	Posted by a private BulkLoads.com member. The process is simple but getting the payment is difficult even if you file on the bond. I have found out thru painful experience that the majority of ag related commodities are exempt from bond collections. It seems silly doesn't it but it is true. Set up a surety bond at considerable expense because the government says you have to and then find out it isn't worth the paper it is printed on. When you call the brokers bondholder tell them what the product is that you are filing for payment for, then be sure you are sitting down when the bondholder explains that ag commodities and freight payments on those commodities is exempt from bond coverage. Hopefully the roof on your building is on very secure, because your reaction to that knowlege is going to be fairly volatile.

Replied on Sat, Jul 20, 2024 at 07:55 AM CST

+ 1

Posted by a private BulkLoads.com member.

The process is simple but getting the payment is difficult even if you file on the bond. I have found out thru painful experience that the majority of ag related commodities are exempt from bond collections. It seems silly doesn't it but it is true. Set up a surety bond at considerable expense because the government says you have to and then find out it isn't worth the paper it is printed on. When you call the brokers bondholder tell them what the product is that you are filing for payment for, then be sure you are sitting down when the bondholder explains that ag commodities and freight payments on those commodities is exempt from bond coverage. Hopefully the roof on your building is on very secure, because your reaction to that knowlege is going to be fairly volatile.