Over the years many prospective customers have asked this question. And the answer has always been, Yes.
And Yes is the right answer, right? I mean having an active bond gives the perception of security, confidence, and all of those warm, reassuring feelings.
But what exactly does this mean? What is a bond used for, what should the amount be, and does it really add any type of security for the customer? If you are a curious type of person, then check out all of the details about a broker’s transportation bond.
Should a broker have a bond?
Yes! In fact, the Federal Motor Carrier Safety Administration (FMCSA) and the U.S. Department of Transportation (US DOT) require all brokers to maintain an active bond. If a broker’s bond is canceled or revoked their legal authority will be revoked.
What should the amount of the bond be?
The answer to this question is also regulated by the FMCSA and US DOT. According to the “MAP-21” bill of 2012, transportation brokers are required to maintain a bond in the amount of $75,000.
How can I verify a bond?
If you are a phone type of person, then simply call the bonding company and provide the broker’s Motor Carrier Number (MC) and/or US DOT number. Executive Auto Shipper’s numbers are MC# 670512 and US DOT# 2243886. You can also verify a broker’s bond online 24/7. Visit the FMCSA’s website and enter the broker’s MC or US DOT number, then select the HTML report. This will take you to the profile page for the broker. This page will provide you with some details about the broker and most importantly the status of their Authority.
Clicking on the Active/Pending Insurance link at the bottom of the page will bring you to a page listing the active broker’s bond information.