Lance Surety Bond Associates, Inc. has launched a new program addressing the $75,000 Freight Broker Bond requirement that will take effect later this year. The Moving Ahead for Progress in the 21st Century Act (MAP 21) transportation reauthorization bill was signed into law in July, 2012, (fmcsa.gov) and stipulates that freight brokers nationwide must post a $75,000 BMC-84 Bond no later than October 1, 2013. The previous bond amount was $10,000.
According to Victor Lance, president and owner of Lance Surety Bond Associates in Doylestown, Pa., the mandated increase of the bond amount to $75,000 has many smaller freight brokers worried about the future of their business, and their ability to comply with the federal regulations.
“With many surety companies unwilling to write this bond altogether, countless freight brokers have experienced great difficulty getting approved for the new bond requirement,” said Lance. “Those that have been fortunate enough to receive a quote have been met with extraordinarily high premium rates, along with additional collateral requirements.”
Lance Surety’s program offers quotes through an online application at low rates for freight brokers of all sizes. The program offers credit-based approvals, without the need for additional documentation, such as business and personal financial statements. Approvals are offered to all types of applicants including those with less than perfect credit, as well as companies with little to no industry experience. Quotes offered through Lance Surety’s program will not require freight brokers to post any collateral.
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