Is BMC-85 a better choice than BMC-84?

[Bond Artist]

Hello,
In what instances would the BMC-85 be a better option than the BMC-84 ( ICC Bond)?

[PT]

Hello,
In what instances would the BMC-85 be a better option than the BMC-84 (ICC Bond)?

It is not uncommon to have to post collateral for the bond (BMC-84) for companies that are too high of a risk to be bonded otherwise. If and when 100% collateral is required for the bond, the BMC-85 trust fund is then a better choice. However, if you can get the bond approved without collateral then it is your best option.

[Admin]

I couldn't agree more with PT on this. We always give contact information out to clients when the BMC-85 is the better option.

You can apply for the bond online at: JW Surety Bonds - Commercial Bond Applications

[james scott]

It is not uncommon to have to post collateral for the bond (BMC-84) for companies that are too high of a risk to be bonded otherwise. If and when 100% collateral is required for the bond, the BMC-85 trust fund is then a better choice. However, if you can get the bond approved without collateral then it is your best option.

Just keep in mind that if the insurance company receives a claim against your bond, be prepared to get replacement coverage, as they are afraid of a "run" on the bond they are quick to pull the trigger on cancellation.
75% of todays freight brokers use the trust fund because they can control their own compliance.


James