The transportation industry, like the construction industry, has many situations where a bond is required in order to obtain work or a permit to operate.
Bonds for the Trucking Industry
Bonds are basically the insurance company guaranteeing that you will perform or pay as required under your obligations. In the event an obligation is not honored a claim by the other party can be made against your bond. The insurance company will then seek reimbursement from you if the claim was valid. Therefore, bonds are, in essence, a form of credit. Good credit is the essential factor in obtaining a bond.
Examples of Trucking Bonds
There are several different bonds that can be purchased. Here are some of the more popular types of trucking bonds:
- Freight Broker Bond
- US Customs Bond
- Motor Vehicle Registration Bond
- COD Delivery Bond
Do you need a bond or have questions? Contact Western Truck Insurance to obtain bonds or learn more.