Texas Salvage License Requirements

Mar 16 Posted on

Who Needs a Texas Salvage License?

In Texas, if you are only salvaging damaged vehicles for parts, you�ll need a salvage dealer license. But if you are rebuilding salvage vehicles for sale as rebuilt vehicles, you�ll need a used car dealer (GDN) license. You won�t need either license if you buy or sell five or fewer salvage or non-repairable vehicles in a calendar year.

What Are the Licensing Requirements?

Several requirements must be met before the Texas Division of Motor Vehicles (TxDMV) will issue a salvage license. These requirements include:

  1. Establishing a business location that complies with state regulations.
  2. Establishing a legal business entity and completing all applicable registrations.
  3. Registering for the National Motor Vehicle Title Information System (NMVTIS) program through which all salvage vehicle transactions must be reported. You’ll need to provide your NMVTIS number when you submit your license application.
  4. Purchasing a two-year $25,000 Texas auto dealer suretybond if you are applying for a GDN license that will allow you to sell rebuilt vehicles.

Why is a Surety Bond Required?

The surety bond is your guarantee to operate your salvage business in complete compliance with all applicable laws and regulations. The bond protects the state of Texas and consumers against financial losses resulting from any unlawful or unethical business conduct on your part.

If you violate the terms of the surety bond agreement, any injured party who can prove a financial loss has the right to file a claim against the surety bond and be compensated up to the $25,000 required bond amount.

Understanding How Surety Bonds Work for Professionals

When a claim is filed, the surety bond company will investigate to make sure it�s valid before attempting to negotiate a settlement with the claimant. If no settlement is reached, you are legally obligated to pay the claim.

However, the surety bond will often go ahead and pay a claim to give the salvage dealer time to put the funds together to cover it. Be aware that if the surety bond company pays a claim on your behalf, the law requires you to reimburse the company. The surety bond company has no legal responsibility to pay claims for you.

What Does It Cost?

The annual premium for any surety bond is calculated as a small percentage of the required bond amount, which in the case of a salvage dealer bond, is $25,000. The surety company decides on a case-by-case basis what that percentage (the premium rate) will be. The biggest factor in that decision is the bond applicant�s personal credit rating. If your credit score is good, you could be assigned a premium rate as low as 1%. If your credit score is poor, you�ll pay a higher premium rate, but you should still be able to get bonded.

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Give us a call or request a quote online for the surety bond you�ll need to get meet the Texas salvage license requirements.

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How to Get a New Jersey Roofing License

Mar 16 Posted on

Do I Need a New Jersey Roofing License?

As of March 2019, New Jersey no longer requires roofers to be licensed. The state�s Department of Community Affairs has reclassified roofing jobs (including total replacement) done on one- or two-family homes as �ordinary maintenance and minor work.� That change means that roofing contractors no longer need to purchase a permit through a municipality.

However, even if you don�t need to obtain a license, it�s still a good idea to purchase a surety bond.

Why Should I Get a Surety Bond?

Many roofers decide to obtain a surety bond even though it isn�t required by law. There are certain types of surety bonds that protect your business and your clients:

  • An employee dishonesty bond will protect your business against financial loss due to theft, fraud, or embezzlement by your employees.
  • A business service bond protects your clients from theft by your employees, which is always a risk when you have employees working on a client’s property.

Employee dishonesty bonds and business services bonds are often referred to as fidelity bonds.

Purchasing a business services bond is a good marketing strategy. Potential clients will be impressed that you have voluntarily chosen to get your roofing business bonded for their protection.

Understanding How Surety Bonds Work for Professionals

Let�s say that you purchase a business services surety bond and then learn that one of your employees stole some expensive power tools from a client�s garage. The terms of the surety bond agreement, a legally binding contract, specify what conditions must be met in order for a claim to be filed. In some cases, a claim can be filed after an arrest, but in others, the employee must first be convicted of the theft.

When a claim is filed, the surety company that issued the bond will first investigate to make sure that it is valid. If it is, the surety company will try to work out a settlement with the claimant. If that�s not successful, you will be responsible for paying the claim.

That being said, it�s common for surety bond companies to pay a claim and then collect reimbursement from the bonded individual. That gives you some time to come up with the funds to cover the claim. So while you might not need to pay the claim immediately, you are legally obligated to repay the surety company for paying it on your behalf.

What Does It Cost?

The annual bond premium for any surety bond is a small percentage of the full �penal� amount of the bond (the maximum amount that will be paid on a claim). Since purchasing a business services bond is entirely voluntary, you get to decide what that amount will be.

The premium rate you�ll pay to purchase a surety bond will be determined by the surety bond company based largely on your personal credit score. If you have excellent credit, your premium rate could be as low as 1% to 3%. If you have some credit issues, you�ll pay a higher premium rate.

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If you agree that voluntarily purchasing a surety bond for your New Jersey roofing business is a good idea, give us a call or request a quote online.

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Insurance Agent License Requirements

Mar 16 Posted on

Who Needs an Insurance Agent License?

Throughout the country, anyone who wants to become an insurance agent must go through the process of obtaining a license in all of the states where they plan to do business. The first thing you�ll need to do is decide what type(s) of insurance (also known as �lines of authority�) you will specialize in. These include life, health, property and casualty, and more.

Next, you�ll need to decide whether you want to operate as an insurance agent or as an insurance broker. Insurance agents represent insurers, which can sometimes be more than one specific insurance company. Brokers represent individuals and companies that want to buy insurance and will find them the best policy available in the insurance marketplace.

What Are the Licensing Requirements?

Licensing requirements differ by state, and in most states, they also differ by line of authority. To find out the requirements you�ll need to meet, check with the state agency that regulates the insurance industry in each state in which you are seeking a license.

In general, you�ll need to:

  • Be at least 18 years old
  • Complete a certain number of hours of pre-licensing education for your chosen line(s) of authority
  • Pass the applicable state licensing exam(s)
  • Undergo a background check

In the majority of states plus Washington, D.C., insurance agencies and insurance brokers must purchase a surety bond as a condition of doing business within the state. In some states, a single bond can cover everyone working in an agency, but in others, a separate bond is required for each individual agent or �producer.�

Why is a Surety Bond Required?

The primary purpose of an insurance agent�s surety bond is to guarantee that insurance agents operate in accordance with all applicable state insurance laws and regulations. The bond also protects the state and the public against financial losses incurred as a result of an insurance agent�s unlawful or unethical business conduct. It ensures that funds will be available to pay damages to the injured party.

Understanding How Surety Bonds Work for Professionals

The surety bond agreement is a legally binding document that brings together three parties: the obligee, the principal, and the surety. The obligee is the state�s insurance regulatory body, the principal is the insurance agent or broker who is required to purchase the bond, and the surety is the company that underwrites and issues the bond.

The obligee sets the required bond amount�also called the bond�s penal amount�which is the maximum that will be paid out on a claim. If the principal violates the terms of the bond agreement, the injured party can file a claim against the bond.

The principal is legally obligated to pay all valid claims, but in many cases, the surety will pay a claim initially and then collect reimbursement from the principal.

What Does It Cost?

The annual premium for any surety bond is a small percentage of the bond�s penal amount. The surety sets the premium rate for each bond applicant. If the bond is for an agency or insurance brokerage company, it is issued in the name of the owner(s). The primary factors the surety takes into account are the personal credit score and financial stability of the owner(s).

Bond applicants who have good credit and are financially stable typically are assigned a premium rate in the range of 1% to 5%. Those with lesser credit and finances should still be able to get bonded, but will pay a higher premium rate.

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Request an online quote or give us a call today to discuss your bonding needs so you can meet these insurance agent license requirements.

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How to Get a Booking Agent�s License in California

Mar 16 Posted on

Who Needs a Booking Agent�s License?

Booking agents, also known as talent agents, are the link between artists and those who hire entertainers. In California, a talent agent/agency is defined as �a person or corporation who engages in the occupation of procuring, offering, promising, or attempting to procure employment or engagement for an artist or artists� (with the exception of recording contracts). Talent agencies may also �counsel or direct artists in the development of their professional careers.�

Artists include actors, musicians, directors, writers, cinematographers, composers, models, and others who work in the entertainment industry.

If you want to operate in California as a talent agent or open a talent agency, you must first be licensed by California�s Labor Commissioner.

What Does the Licensing Process Involve?

The licensing process is carried out by the California Department of Industrial Relations, Division of Labor Standard Enforcement, Licensing and Registration Unit. Here is an overview of the steps in the process:

  1. Obtain an application one of the following ways:
  2. Gather the required supporting documentation listed on the Licensing and Registration web page. This will involve purchasing a $50,000 talent agency surety bond.
  3. Pay the $25 filing feeand submit the completed application and supporting documents.
  4. Pay the $225 license fee when a new or renewal license is issued.

Why is a Surety Bond Required?

The talent agency business, like many others, carries the potential for causing financial harm to the public unless it operates in full compliance with all applicable laws and regulations. The surety bond requirement ensures that funds will be available to compensate anyone who suffers a financial loss as a result of a talent agency�s unlawful or unethical actions.

Understanding How Surety Bonds Work for Professionals

Every surety bond agreement is a legally binding contract that gives an injured party the right to file a claim against the bond and receive payment for damages. There are three parties to a booking agent/talent agency surety bond agreement, which are the state of California (the �obligee� that requires the bond), the talent agency (the �principal� required to purchase the bond), and the company that underwrites and issues the bond (the �surety�).

The obligee specifies the conduct that would be a violation of the surety bond agreement. The principal is legally obligated to pay every valid claim against the bond. The surety decides what the principal will pay for the bond and investigates each claim to make sure it�s valid.

Although the responsibility for paying claims rests with the principal, in many cases, the surety will pay a claim upfront to expedite payment and give the principal some time to gather the necessary funds. However, the principal must then reimburse the surety.

What Does It Cost?

The annual premium for any type of surety bond is only a fraction of the bond�s �penal� amount (the maximum amount that will be paid on a claim). The surety bases the premium rate primarily on the principal�s personal credit score. The higher the credit score, the lower the premium rate. If your credit score is low, you should still be able to get bonded, but you will pay a higher premium rate.

Get Bonded Today

Request an online quote today for the surety bond you need to work as a booking agent or talent agency in California. Or, call and discuss your bonding needs with one of our surety bond experts.

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How to Get a Trucking Broker�s License in Texas

Mar 2 Posted on

Who Needs a Trucking Broker�s License?

Trucking brokers, also known as freight brokers, play an important logistical role in the movement of freight throughout the country. They match shippers with motor carriers who can move their freight.

Shippers pay for this service because freight brokers save them money by negotiating shipping fees, selecting only reputable carriers, tracking the movement of freight, and keeping shippers updated on the status of their loads.

Anyone who wants to work as a trucking broker must be licensed by the Federal Motor Carrier Safety Administration (FMCSA). This is the part of the U.S. Department of Transportation that is responsible for regulating interstate commerce and enforcing safety rules.

What Does the Licensing Process Involve?

The steps in the licensing process are as follows:

  1. Establish a business entity in Texas. This can be a sole proprietorship, partnership, LLC, or corporation. Register it with the Office of the Texas Secretary of State.
  2. Obtain a US Department of Transportation (USDOT) number.
  3. Apply to the FMCSA for an operating authority (the official term for a broker’s license) through the Unified Registration System. You’ll need to enter your USDOT number and fulfill all of the FMCSA licensing requirements. These include obtaining a $75,000 freight broker bond, having the necessary insurance (cargo, bodily injury, and property damage coverages), and paying the license fee.
  4. Designate a process agent to whom court papers may be served in the event that you are sued in your capacity as a trucking broker.You must have a process agent in every state where you do business. Submit a completed form BOC-3 to the FMCSA.
  5. It takes 4-6 weeks for DOT to approve and issue a new operating authority.

Why is a Surety Bond Required?

Every trucking broker must establish a $75,000 trust fund or purchase a $75,000 surety bond as part of the process of obtaining the necessary operating authority. The advantage of choosing the surety bond option is that it doesn�t tie up your cash or assets. The specific bond for obtaining a trucking broker�s license is called a BMC-84 bond.

The purpose of the bond is to ensure that funds will be available to compensate the shipper or carrier if you fail to meet the terms of a contract or otherwise cause them to suffer a financial loss. Thus, the bond serves as the broker�s guarantee to operate in a completely lawful and ethical manner.

Understanding How Surety Bonds Work for Professionals

The surety bond agreement is a legally binding contract that entitles an injured party to file a claim against the trucking broker�s surety bond and be compensated for their loss. There are three parties in the agreement. These are the obligee that requires the bond (USDOT), the principal required to purchase the bond (the broker), and the surety that underwrites and issues the bond.

The obligee establishes the required bond amount ($75,000) and the conduct that would constitute a violation of the surety bond agreement. The surety determines what a given broker will pay for a bond, and the principal is legally obligated to pay all valid claims against the bond.

The surety will often pay a claim on behalf of the principal to give the principal time to gather the funds to cover the claim. The principal is legally obligated to reimburse the surety for any such advance claims payment. The terms of the surety bond agreement indemnify the surety against any legal responsibility for paying claims.

What Does It Cost?

The annual premium for any type of surety bond is a small percentage of the required bond amount, also known as the bond�s penal amount. This is the maximum amount that will be paid on a claim.

The surety bases the premium rate primarily on the principal�s personal credit score, though other factors may also be considered. The higher the principal�s credit score, the lower the premium rate and vice versa.

Get Bonded Today

Request an online quote today for the surety bond you need to obtain your operating authority as a trucking broker. Or, give us a call to discuss your bonding needs with one of our experienced surety bond professionals. We look forward to serving you.

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How to Get a Trucking Broker�s License in Georgia

Mar 2 Posted on

Who Needs a Trucking Broker�s License?

The terms �trucking broker� and �freight broker� are often used interchangeably. They both refer to people who handle the logistical aspects of moving freight from one part of the country to another. Their role is to play �matchmaker� between shippers who have freight and carriers who can move it.

Trucking brokers save shippers money by negotiating shipping fees with reputable, reliable carriers. They also track shipments from one point to the next and keep shippers informed of the status of their freight while it�s in transit.

Trucking brokers are licensed by the federal government, not by individual states. Licenses, which are called operating authorities, are issued by the Federal Motor Carrier Safety Administration (FMCSA). This is the part of the U.S. Department of Transportation (USDOT) that regulates interstate commerce.

What Does the Licensing Process Involve?

To obtain an operating authority to do business as a trucking broker in Georgia, you�ll need to accomplish the following:

  1. Create a legal business entity in Georgia. This can be a sole proprietorship, partnership, LLC, or corporation. You’ll need to register your business with the Georgia Department of Revenue.
  2. Obtain a (USDOT) numberfrom the U.S. Department of Transportation.
  3. Apply to the FMCSA for an operating authority through the Unified Registration System. You’ll need to enter your DOT number to access the system. Be sure to fulfill all of the FMCSA licensing requirements including purchasing a $75,000 freight broker bond, providing proof of the necessary insurance, and paying the license application fee.
  4. Designate a process agent. This is the person the court can serve papers to if you are sued in your capacity as a trucking broker.You must have a process agent in every state you do business in. Submit a completed form BOC-3 providing this information to the FMCSA.
  5. It takes 4-6 weeks for DOT toapprove and issue a new operating authority.

Why is a Surety Bond Required?

The $75,000 bond, known as a BMC-84 bond, is an alternative to establishing a $75,000 trust fund. Most brokers don�t want to do establish a trust fund because it ties up their cash and/or assets. The bond, however, provides financial protection for shippers and carriers who could suffer a loss if you fail to live up to the terms of a contract with them. The bond is your guarantee to conduct business in a completely lawful and ethical manner.

Understanding How Surety Bonds Work for Professionals

The surety bond agreement is a legally binding contract involving three parties. The USDOT is the obligee requiring the bond, the trucking broker is the principal required to purchase the bond, and the company that underwrites and issues the bond is the surety. Each party has specific rights and responsibilities.

The obligee has set the required bond amount (also known as the bond�s penal amount) at $75,000 and established the conduct that would be considered a violation. The surety sets the bond�s premium rate for each applicant approved, and investigates any claims to make sure they are valid. The principal bears full legal responsibility for paying claims against the bond.

When a claim is filed and the surety determines that it is valid, often times, the surety will pay it rather than waiting for the principal to do so. This gives the principal a little time to gather the funds to cover the claim. However, the principal is legally required to repay the surety for any such advance payments to claimants.

What Does It Cost?

The principal pays an annual bond premium that is only a small percentage of the bond�s full penal amount, which is the maximum amount that will be paid on a claim. The premium rate is set by the surety based largely on the principal�s personal credit score. Those with excellent credit will typically be assigned a premium rate of no more than 3%, but those with lesser credit will pay a higher rate.

Get Bonded Today

When you�re ready to apply for licensing as a trucking broker in Georgia, contact us or request a quote for the BMC-84 bond you need!

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How to Get a Liquor License in Missouri

Mar 2 Posted on

Learn how to get a liquor license in Minnesota, and request a quote today from Single Source Insurance for the bond you need.

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Who Needs a Liquor License?

The Alcohol and Tobacco Control Division of the Missouri Department of Public Safety issues five main classes of retail liquor licenses in Missouri:

  • By Drink
  • Package
  • Temporary Retail
  • Other Retail
  • Secondary Retail

There are multiple license types within each of these categories, as well as licenses for wholesalers, manufacturers, solicitors, and wine direct shippers. Our primary concern here is with retail liquor licenses.

What Does the Licensing Process Involve?

The licensing process varies somewhat depending on the type of license needed. The licensing section of the Missouri ATC website lists all of the necessary documents, fees, and other requirements for obtaining each type of liquor license (both retail and others). In most cases, one of these requirements is the purchase of a Missouri liquor surety bond.

Why is a Surety Bond Required?

The specific bond you�ll need in order to get a retail liquor license in Missouri is the Intoxicating Liquor, Wine, and 5% Beer Tax corporate surety bond. The bond is your guarantee to abide by the laws and regulations governing the payment of sales taxes to the state.

Understanding How Surety Bonds Work for Professionals

Every surety bond agreement is a legally binding contract among three parties, which are the obligee, the principal, and the surety. In this case, the obligee is ATC, which requires the bond as protection against financial loss resulting from a licensee�s failure to remit sales taxes. The licensee is the principal who is required to purchase the bond, and the surety is the company that underwrites and issues the bond.

The obligee determines the required bond amount on a case-by-case basis, with a minimum of $1,000 and a maximum of $10,000, but never more than twice the principal�s monthly sales tax liability. This is the bond�s penal amount, which is the most that will be paid on a valid claim against the bond.

The principal has sole financial responsibility for paying claims, but it�s often the surety that pays the claim initially. This ensures that claims are paid promptly even if the principal needs a little time to gather the necessary funds. But an advance payment made by the surety on behalf of the principal doesn�t let the principal off the hook. The principal is legally obligated to reimburse the surety.

What Does It Cost?

The annual premium for a Missouri liquor license bond is a small percentage of the required bond amount. While the obligee determines the required bond amount, it�s the surety that sets the premium rate, also on a case-by-case basis. The primary factors the surety considers are the principal�s personal credit score and financial stability. If your credit and finances are good, you�ll probably be assigned a premium rate in the range of 1% to 3%. If you have poor credit, your premium rate will be substantially higher.

Get Bonded Today

We�re here to help you get the best possible rate on the surety bond you need to obtain a Missouri liquor license. Request an online quote or give us a call today!

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How to Get a Freight Broker�s License in California

Mar 2 Posted on

Who Needs a Trucking Broker�s License?

Freight brokers take care of the logistics of moving freight from one point to another. They serve as intermediaries between shippers who need to have freight moved and carriers who can do the moving.

They negotiate shipping fees with reliable carriers and track shipments from their starting point to their destination. Shippers rely on them for information about the status of their freight while it�s in transit.

California-based freight brokers are licensed by the federal government, not by the state. The Federal Motor Carrier Safety Administration (FMCSA) issues freight broker licenses, which are called operating authorities. FMCSA is part of the U.S. Department of Transportation (USDOT), which regulates interstate commerce in the country.

What Does the Licensing Process Involve?

To get the operating authority you�ll need to work as a freight broker in California, you�ll need to accomplish the following steps:

  1. Create a legal business entity in California, such as a sole proprietorship, partnership, LLC, or corporation. You’ll need to register your business with the California Secretary of State.
  2. Apply for a (USDOT) number from the U.S. Department of Transportation. You’ll need to enter this DOT number in the next step.
  3. Use the Unified Registration System to apply for an operating authority from FMCSA. You’ll need to enter your DOT number to access the system. Fulfill all FMCSA licensing requirements, including obtaining a $75,000 freight broker bond, providing proof of proper insurance coverage, and paying the license application fee.
  4. Name a process agent. This will be the person the court can serve papers to if you are sued in your role as a freight broker. You must have a process agent in every state in which you do business. Process agent information is submitted to the FMCSA using form BOC-3.
  5. Within 4-6 weeks you should have your operating authority from FMCSA.

Why is a Surety Bond Required?

FMCSA requires freight brokers to purchase a $75,000 bond known as a BMC-84 bond. Alternatively, you can set up a $75,000 trust fund, if you don�t mind typing up your cash and assets.

The bond serves as your guarantee to do business in a completely lawful and ethical manner. It also provides financial protection for shippers and carriers who could suffer a financial loss if you violate the terms of a contract with them.

Understanding How Surety Bonds Work for Professionals

The surety bond agreement is a legally binding contract. The three parties to the contract include the USDOT (the obligee), the freight broker (the principal ), and the company that underwrites and issues the bond (the surety).

As the obligee, the USDOT has set the required (penal) bond amount at $75,000 for all freight brokers. The surety assigns a premium rate for each applicant approved and investigates claims. But it�s the principal who has full legal responsibility for paying claims against the bond.

When a claim is filed and found by the surety to be valid, the surety typically will pay it right away rather than wait for the principal to come up with the funds. However, the principal is legally obligated to reimburse the surety.

What Does It Cost?

The annual premium for a freight broker�s bond is calculated by multiplying the bond�s penal amount by a premium rate established on a case-by-case basis by the surety. The surety bases the premium rate primarily on the principal�s personal credit score.

The premium rate is set by the surety based largely on the principal�s personal credit score. If your credit is very good, you�ll be assigned a premium rate in the range of about 1% to 3%.� If your credit is poor, you�ll pay a higher premium rate.

Get Bonded Today

Give us a call or request a quote for the BMC-84 bond you�ll need to become licensed as a freight broker in California.

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