BMC 85 Broker Bond - exempt commodities- claim denied
We recently filed a claim for payment on a brokers bond. This broker had been making a number of excuses for not paying, claiming he was defrauded by an employee that is no longer with the company who then took much of his business. The broker received payment from his customer - which is a MAJOR company - but apparently the broker has not, and is not planning to pay a number of carriers who hauled the freight. I received a short email from the company that handles the freight claims letting me know that a BMC 85 Broker bond does not cover exempt agricultural commodites. The load we filed on was a load of poultry meal. Word to the wise - if you haul exempt commodities,(which a large percentage of ag commodites are) - the $75000 broker bond gives you NO PROTECTION from a broker who will not pay you.