An Interstate Commerce Commission (ICC) bond is same as the freight broker surety bonds. This kind of bond is generally bough by transportation dealers in order for operating the business. These bonds are sometimes taken to be risky.
Important information of freight broker surety bonds
- Validity- the validity of the bond remains only for a year. The validity starts from the date it has been issues. After finishing of a year, the re-applying of the bonds might depend on certain other factors. The bond also leads to certain rules and regulations like, the client has to give some compensation if in case some files a charge against the client’s bond itself.
- Calculation- the calculation of the freight surety bond is nearly depended on the credit score of the individual. If the credit score is good enough then good premiums will be provided and if the credit score is less then less premium range is established.
- Other factors- there are certain other factors on which the premium for the ICC bond can be calculated. some of the factors are-
- Good credit score
- Number of years of working in the market
- Trust worthiness of the company to the clients
- Financially stable records
- Paying of any delayed tax liens
- Talking to agency to lower the bonding cost
- Choosing right agency- choosing the good and reliable agency as the bonding partner might reduce some of the bonding costs which will be very helpful in increasing the credit score and as well the premium on the ICC bonds.
- Avoid complaints- the main factor is to avoid certain complaints like complaints of late deliveries or any other problems from the clients. This might increase the reputation in the market.
Thus, all these points are to be kept in mind for increasing the freight broker bonding cost and so in turn the premiums.
