TIA payment guarantee goes beyond required $10,000 bond
The Transportation Intermediary Association will offer its members the opportunity to obtain additional guaranteed payment coverage with limits beyond the federally mandated $10,000 bond.
Through Avalon Risk Management, the TIA developed the Guaranteed Payment Program (GPP), which guarantees payment to carriers, shippers or other third-party logistics firms up to a total limit of either $25,000 or $100,000. The bond is underwritten by Lincoln General Insurance Co., Avalon's sister company.
'Should carriers or shippers file a claim for more than $10,000, a transportation broker participating in the GPP would be able to cover the excess claim amount up to $25,000 or a maximum of $100,000 depending on the size of the bond a property broker secures,' Avalon said in a statement.
To participate in GPP, a TIA member must be part of the association's Platinum Performance and AMTEX Surety programs. For more information about the program, access Avalon's Web site at www.avalonrisk.com.
Avalon also offers insurance coverage for third-party logistics companies through its Combined Transit Liability program. The CTL program, endorsed by the TIA, provides complete protection for transportation brokers by combining errors and omissions insurance with contingent cargo and/or contingent auto liability coverage options.