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馃挜 Freight Broker Surety Bond. Don't Choose The Wrong Bond Provider! 馃挜 - YouTube
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- Usually we don't get unanimous agreement
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but I'm pretty sure that
most of us would agree
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that the idea is to not
to have to pay a claim.
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Not to have a claim filed
against your surety bond
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but in this business claims happen,
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and when they do happen,
we need to be prepared
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for that as freight brokers,
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by having a $75,000 surety bond.
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And not only do we need
to have a surety bond,
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we need to have a
provider that understands
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the surety bond process,
the claim process.
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And if you're anything like
me, when you first got started
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you really didn't pay a
whole lot of attention
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to who you chose as the provider.
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You were more concerned with saying,
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hey, I'm just interested
in getting a provider
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that will give me a $75,000 surety bond,
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and we'll give it to me at a price
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that is not very very expensive
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a price that is affordable, right?
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Exactly, just like me
when I first got started.
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So with that said, I
wanna talk to you today
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about something that you should
look a little bit more into
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and that is who your
surety bond provider is.
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Because one day a claim may happen,
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and when that claim does happen,
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you wanna be prepared for that
by having a right surely bond
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provider because that's
gonna make a big difference
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because not all surety
bond providers are equal.
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So in today's video, I'll share with you
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who my surety bond provider is,
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the number one benefit
you get when you choose
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the right surety bond provider,
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and the consequences of choosing the wrong
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surety bond provider.
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So come on inside, sit back
relax and enjoy the video.
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Now let's get into the business.
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(upbeat music)
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So sometimes people refer to a surety bond
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as being similar to insurance.
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But when we really start
to look at a surety bond
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it's really not like insurance,
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is more like a line of credit
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when we really start to look at it.
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Say for example you were in your car,
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and you got hit by someone
else no fault of your own,
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and you were paying X
amount of dollars per month
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for your insurance.
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And then the claims folks
came in and they said,
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hey it's gonna take about
$5,000 to fix your car.
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Well, they'll come in
and write you a cheque
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or write the lien company
a cheque for that $5,000
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and get your car fixed
through whatever body shop
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you decide to go through.
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And then you don't have to
come back and pay the insurance
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anything after they've paid that $5,000
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you just keep paying your
regular monthly payment.
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Well, it's a little bit
different on a freight broker
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surety bond side of the house.
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When someone whether it's a
shipper or a carrier of files,
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a claim against your bond,
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what happens is the surety
bond company decides
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whether they're gonna
pay that claim or not.
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And when they go ahead and pay that claim
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if that's what they decide to do,
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then guess who's
responsible for coming back
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and paying the surety bond
whatever amount of money
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they paid for that claim?
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You are, and you might say he
might ask a great question,
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Brandon why would I have to pay
the surety bond company back
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if I'm already paying
a premium every year?
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Well, you may be paying 900,
a $1,000, 2000 or $3,000
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per year for your surety bond.
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But if a claim happens, that
could be 15,000, $20,000
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and a surety bond company
doesn't know how long
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you're gonna be in business,
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so that they can keep
recouping their money,
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they're gonna make you pay that money back
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to make sure that they get their money.
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So make sure you're looking at the clauses
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within your contract to know what happens
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when surety bonds pay out claims.
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Let's just say they paid
$20,000 out for a freight claim.
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What are your responsibilities?
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How do you have to pay the company back?
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Do you have to come in and
make a one-time payment
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of $20,000 or do you have to
make that payment over time?
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If you don't know that,
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then you need to look into your contract,
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you need to talk to
your bond representative
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to find out what happens
when claims happen.
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A freight broker surety
bond is an insurance
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for your carrier or your shipper,
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the person that files a
claim against your bond,
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not really insurance for
you as a freight broker.
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So what do I mean when
I say good bond provider
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or the right bond provider?
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In my opinion, a bond provider
is one who will pay claims
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when necessary, but also
will evaluate the process
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to make sure a claim should be paid.
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Because what you have to
understand when a claim is filed
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that doesn't necessarily
mean that you are at fault
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and you should have to pay,
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because ultimately
remember you have to pay
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the bonding company back.
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So you want a bonding company
that comes in and says
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wait a minute, let me
take a look at the facts,
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evaluate this thing, to make
sure that Alliance Logistics
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or your company is even
responsible for having to pay
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this claim.
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And then if you are responsible
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then they'll go ahead and pay that claim.
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But it's important to have
that type of team member
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to evaluate the process, to
make sure that everything
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is lined up, because we don't
know all of the ins and outs
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when it comes to a claim.
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So a good bond provider will
help you to avoid having to pay
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unnecessary claims.
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And if you remember at
the front of this video,
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we did agree that the idea
is not to have to pay claims.
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So how do you not pay claims?
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Well, part of that is making
sure that there is a legitimate
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claim from the onset, and
again your surety bond provider
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will help with that.
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So the number one benefit in
my opinion of a good surety
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bond provider, the right
surety bond provider,
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is that they are gonna do the research,
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they're gonna evaluate the situation,
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evaluate the facts,
before they pay a claim.
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That way you don't have
to pay unnecessary claims.
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And the consequences for
choosing the wrong freight
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broker surety bond provider are plenty,
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but one obvious consequence
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is it leaves you on the hook for the bill.
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And don't forget more than
likely you signed an indemnity
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agreement when you got your surety bond.
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And what an indemnity agreement is,
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is basically saying that you
don't hold the surety bond
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company liable for any losses,
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you're gonna make up for those losses,
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you're gonna pay those losses.
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So you need to read through
this indemnity agreement
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very carefully to make sure
that you understand it.
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You also might find, and
that they're gonna require
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that your spouse signs this
indemnity agreement as well.
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So you'll be on the hook and
your spouse will be on the hook
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for this particular contract.
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So read it to understand
it before you sign it.
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So when I'm choosing a bond provider,
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I want a bond company that has
been in business for a long
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period of time, a longstanding reputation,
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somebody that understands
the bonding process,
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makes it easy for us to sign up with them,
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and explains how it
works, how claims works,
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that way we have a
really good understanding
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of what happens when a
claim is actually filed
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against a bond.
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You need a company that
has the resources in place
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to sit down and talk with
you and explain that to you,
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answer the questions that you
have in reference your bond.
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So now company called JW Surety Bond.
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I've been very happy with JW Surety Bond
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over the last two years,
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it's a company that I
would definitely recommend
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very professional, and you're
gonna have a representative
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over there that's going
to help you sign on
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and understand the process.
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My representative over at JW Surety Bond
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who I highly recommend
that you give a call,
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if you're interested in
getting a surety bond shot
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because she's gonna take care of you,
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make sure that you're squared away,
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make sure that you understand the process,
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her name is Kimberly Lightcap.
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Her number is (267) 362-4934.
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Again, that number is (267) 362-4934.
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Make sure that you let
her know that Brandon
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of the Alliance Logistics sent you,
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and I'm also gonna leave
you her email address
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into the description.
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So now one of the main
reasons why I recommend
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that you at least have a conversation
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with Kimberly Lightcap
over at JW Surety Bond
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especially if you're
looking for a surety bond
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is because JW Surety Bond
is the number one provider
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throughout the nation
when it comes to volume.
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The next thing is, is that JW Surety Bond
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is definitely gonna give
you a competitive price,
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if you have decent credit.
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My bond currently costs
me about $940 per year.
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So how I see it is when you
have the number one surety bond
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provider by volume in the nation,
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a very reputable surety buying company,
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and then you're gonna get a great price,
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a very competitive price
if you have decent credit,
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then it's a no brainer to
talk with that surety bond
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provider, also what I
want you to be mindful of
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when it comes to the rate that
you pay for your surety bond
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is it's not just dependent on credit,
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it's also dependent on
how many years you've had
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in a business, if you've had
any claims filed against a bond
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before, and different things such as that.
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So I wouldn't necessarily
expect to get a $900 rate
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if I only got one or two
years in the business.
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So that's what I wanted
to share with you today,
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I certainly hope this
information has been helpful,
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if you wanna learn more about
the freight broker business
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I'm gonna leave a link in the description.
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It's my free five video series titled,
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How The Low Movement Process Works.
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It'll give you a chance
to come into my office
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and watch over my
shoulder as I move loads,
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talk to shippers, talk to carriers,
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that way you can get a really good idea
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of exactly how the business
works before you come into it.
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And then if you're interested
in talking to somebody
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about your freight broker surety bond,
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I'm leaving Kimberly Lightcap information
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within the description.
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Last but not least,
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one of the toughest things
that we have to grapple with
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when we first get started,
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is figuring out how to get shippers.
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So I'm gonna leave you a free
video where I'm showing you
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exactly how we found the
shippers that we work with.
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So until the next time,
I wish you the very best
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in your life in business,
see you at the top,
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because the bottom is so much too crowded.
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