How To File on a Broker's Bond -

The Code Of Federal Regulations (CFRs) is where you want to start for your inquiries about transportation brokers: http://www.ecfr.gov/

The "simple" search will take you directly to "PART 371—BROKERS OF PROPERTY" and this section defines and lays out what transportation brokers are and what their duties include.

 

The best place to start for filing against a broker's bond is: http://pac-fin.com/claims-form.php and, no, the broker's bond does NOT have to be from Pacific Financial for you to use their "file a claim" form.

Their main site is: http://pac-fin.com/ and select "submit claim form" from the top options.

Their phone number is: 800 595 2615

 

It's not so helpful, but here's part of the law: [h=1]49 CFR 387.307 - PROPERTY BROKER SURETY BOND OR TRUST FUND.[/h]http://www.law.cornell.edu/cfr/text/49/387.307

 

Also, these:

1) http://www.law.cornell.edu/cfr/text/49/387.315

2) http://www.law.cornell.edu/cfr/text/49/387.317

3) http://www.law.cornell.edu/cfr/text/49/387.301#d

 

If you have the broker's MC number, you can also use the FMCSA's website to get a broker's filings, which includes the policy number, name and contact information of their bonding company:

http://safer.fmcsa.dot.gov/CompanySnapshot.aspx

 

The question is not about how to file a claim. Instead, the question is what other laws and regulations govern this whole process, aside from the one's specified above? Where does it say when and how, under which circumstances, are a surety company obligated to pay out? This seemingly simple piece of information is not easily available.

 

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Unless something has recently changed you'll get your cut of the bond be it a $10k or $100k bond. So if they have a $100k bond, get $1.5mm in claims and your total claims are $25k your going to get a check for $1666.00 minus fees and expenses. We had to file on a bond many years ago for about $4k. However there were so many filings against the then required $10k bond our payout would have been under $10 so we received nothing and neither did anyone else who filed.

If the bonds were an actual "Per Occurrence" the cost of bonding would be outrageous for the broker because they would have to purchase additional bonds based on the amount of payable invoices on the books.

Doesn't matter if your a one load a week broker or CH Robinson, the required bond is the same for all.