Frequently Asked Questions (FAQ)
Bond Amount is $75,000.00. Standard Rate is 1.250% per year; with a minimum premium of $100.00.
COLORADO-FMC-48 NVOCC/ N.V.O.C.C.
Bond for Non-Vessel Operating Common Carriers in Colorado (COLORADO-FMC-48 NVOCC Bond)
The bond for Non-Vessel Operating Common Carriers (NVOCC) in the state of Colorado (COLORADO-FMC-48 NVOCC Bond) is a form of financial guarantee required for most NVOCC businesses to operate in Colorado. This bond (also known as NVOCC Bond or Non-Vessel Operating Common Carrier Bond) protects consumers and government agencies from fraudulent activities, contract breaches, or other issues related to NVOCC businesses in Colorado.
Key Points to Know About the NVOCC Bond
- License Requirement: In most U.S. states, including Colorado, NVOCC businesses must provide a bond as part of the licensing process for operating as a non-vessel operating common carrier.
- Consumer Protection: If an NVOCC business violates the law, provides false information, or infringes upon consumer rights, customers or the state of Colorado may file a claim against the bond for compensation.
- Bond Amount: Depending on the state and type of business, the bond amount may vary. For NVOCC businesses in Colorado, the bond amount is typically $75,000. The company pays only a portion of this amount as a premium for the bond, similar to an insurance payment.
- NVOCC Business Obligations: NVOCC businesses are required to comply with all laws and regulations governing their operations. Violating these rules may result in claims against the bond.
Thus, the bond for NVOCC businesses is an essential tool for ensuring trust and protecting the interests of consumers and government entities.
What Does an NVOCC Business Do?
NVOCC (Non-Vessel Operating Common Carrier) is a business that organizes cargo transportation without owning the transport vehicles. They contract for shipping services and provide coordination and documentation services for cargo transportation.
Example: Boris and His NVOCC Business
Boris is an experienced entrepreneur who runs a successful NVOCC business in the state of Colorado. He helps companies organize cargo transportation without needing to own any transport vehicles. One day, Boris faced a problem when a client filed a complaint claiming that their cargo was lost during transport. Upon investigation, it was revealed that Boris had failed to provide proper documentation, resulting in losses for the client. A claim was filed against Boris’ bond, and he lost his financial guarantee. This led to severe financial consequences and damage to his reputation.
How Much Does the NVOCC Bond Cost in Colorado?
The cost of the bond for NVOCC businesses in Colorado is $937.50 per year. The standard rate is 1.250% of the bond amount. This means that for a $75,000 bond, the company will need to pay approximately $937.50 per year for the financial guarantee.
Example: How Boris Lost His Bond
Boris, the owner of an NVOCC company, violated the law by failing to ensure the safe transportation of cargo. Clients filed claims against his bond, and as a result, Boris lost his financial guarantee and faced significant legal and financial repercussions.
Frequently Asked Questions
How much does the NVOCC bond cost in Colorado?
The cost of the bond ranges from $937.50 per year, depending on the bond amount and the applicant’s credit history.
Do I need a bond to operate an NVOCC business in Colorado?
Yes, a bond is required to obtain a license to operate an NVOCC business in the state of Colorado.
How can agents obtain an NVOCC bond in Colorado?
Agents can obtain a NVOCC bond in Colorado through the client portal by clicking here.
You can view other bonds on our website.
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Execution Notes
Bond must have an original signed Attorney in Fact signature.
Filing Method
Executed bond must be filed with the obligee by agent/principal.
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