Jet Counters Hard Market With Innovative Freight Broker Bond Program

PR Newswire

CHARLOTTE, N.C., Oct. 17, 2023 /PRNewswire/ -- Jet Insurance Company ("Jet") has developed an innovative bond program to provide consistent and sustainable surety credit to legitimate freight brokers amidst a wave of criminal activity and business failures in the logistics sector.

Over the past six months, four surety carriers with significant market share have exited the Freight Broker Bond market after experiencing unacceptable loss ratios. The freight industry relies on surety companies to properly scrutinize those applying for the $75,000 Freight Broker Bond to ensure the applicant has the experience, character and financial capabilities to operate as a freight broker.

"As soon as we entered the market, we were hit with several severe Freight Broker Bond claims. Rather than pulling out of the Freight Broker Bond market, which we considered, we decided to tackle the issues plaguing surety carriers and the freight industry head-on", said Joseph Pappalardo, EVP of Freight Broker Bonds for Jet.

The program's underwriting process assesses all the risks associated with each applicant, including identity verification, financial stability, industry experience and freight industry red flags, all in one easy-to-navigate online application. The program offers surety bonds to legitimate brokers with appropriate experience and financial strength, signaling to freight carriers that brokers who have gone through this process have been well-vetted.

Jet has offices in Charlotte, North Carolina, Dallas, Texas and Sacramento, California. Jet Insurance Services, Inc. serves as the agency on the Freight Broker Bond program and is licensed in all 50 states. Jet Insurance Company serves as the reinsurer for the program and Lexington National Insurance Company serves as the fronting company. For more information, call 210-670-5955, email [email protected], or visit https://jetsurety.com/freight-broker-bond.