Bonds & Insurance
Bonds & Insurance
By leveraging our relationships with the surety and insurance companies, we are able to procure bonds and insurance for our clients at competitive premiums. The bonds and insurance is serviced under our d/b/a Paramount Global Insurance Services.
OTI Bonds
Through years of cooperation, we have built strong relationships with multiple insurance companies. We continue to search and expand our relationships with insurance companies thereby creating access to insurance markets previously unavailable to our clients. By leveraging these markets, we are better able to bonds for our clients at competitive premiums.
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An ocean freight forwarder (OFF) must furnish proof of financial responsibility (surety bond) in the amount of US$50,000.00.
An NVOCC operating in the United States must furnish proof of financial responsibility (surety bond) in the amount of US$75,000.00.
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An unlicensed, foreign-domiciled OTI must furnish proof of financial responsibility (surety bond) in the amount of US$150,000.00.
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A licensed foreign-domiciled OTI must furnish proof of financial responsibility (surety bond) in the amount of US$75,000.00.
Customs Bond
T&E, IT, CTPAT, AMS, bonded warehouses, among others, are activities that require a customs bond. If you are engaging in or are looking into these activities, let us know and we will be more than happy to guide you on the bonding requirements.
FMCSA Freight Broker Bond
Also known as the BMC-84 surety bond, this bond is required if you are a transportation broker or a freight forwarder who, for compensation, arranges or offers to arrange the transportation of property by an authorized motor carrier. To see if you are subject to the bonding requirement, give us a call and we will be happy assist you.
Cargo Insurance
Did you know you should consider getting cargo insurance even if you think your cargo is not worth covering? Why, you ask? General average. It should be the primary reason for purchasing cargo insurance. If you are caught up in a General Average condition, it could cost up to 25% of the value of your cargo! Worse still, you have to post a bond just to claim the cargo. On the other hand, if you have cargo insurance with general average condition stating that the insurer will pay in full, the insurer will post the general average bond to the cargo owner’s contribution and facilitate release of the cargo.
E&O/Legal Liability Insurance
We all make mistakes, but some errors end up exposing you to unnecessary financial risks. Most people erroneously believe that they are immune from E&O liability. Now imagine that your client's time-sensitive cargo isn't received timely because of your mistake, and the client is financially harmed. That client may legally come after you and if you haven't purchased an E&O, then you may be personally liable for the court costs and damages. Stressful, isn't it? E&O is really about giving you a piece of mind.