Trans Repair Shop Bond to Protect Supplier-Help?
Posted: Tue May 23, 2006 5:13 pm
Ok gang, I've got a good one!
Client is a trans repair shop. Client installs and resells (to others) remanufactured transmissions from a supplier in the mid-west. Currently, the shop "buys" inventory from the supplier as needed. The supplier has approached the shop and wants to make them a distributorship and supply product on consignment.
However, the supplier wants protection against owner/employee dishonesty. For example, the trans shop owner decides to take a dozen units to the local swapmeet and have a fire sale, than takes off south of the boarder. The supplier wants protection for their monetary loss on the product under the client's care custody and control.
Now, client already has comm prop w/prop of others endorsed. We've looked at bonds (financial guarantee and fidelity) but can't seem to find a fit that will satisfy the supplier. Conviction clause on fidelity bonds is proving to be a show stopper. Coverage amount is $100K or better, if we can find it.
Looking for ideas. Your thoughts?
Client is a trans repair shop. Client installs and resells (to others) remanufactured transmissions from a supplier in the mid-west. Currently, the shop "buys" inventory from the supplier as needed. The supplier has approached the shop and wants to make them a distributorship and supply product on consignment.
However, the supplier wants protection against owner/employee dishonesty. For example, the trans shop owner decides to take a dozen units to the local swapmeet and have a fire sale, than takes off south of the boarder. The supplier wants protection for their monetary loss on the product under the client's care custody and control.
Now, client already has comm prop w/prop of others endorsed. We've looked at bonds (financial guarantee and fidelity) but can't seem to find a fit that will satisfy the supplier. Conviction clause on fidelity bonds is proving to be a show stopper. Coverage amount is $100K or better, if we can find it.
Looking for ideas. Your thoughts?
pretty sure this is the coverage you need