FIATA Group Bond Programme
Avalon Risk Management and the International Federation of Freight Forwarders Associations (FIATA) teamed up in 2005 to provide a group NVOCC bond. The bond is underwritten by Southwest Marine and General Insurance as surety and meets the Federal Maritime Commission’s financial responsibility requirement of all NVOCCs.
Eligibility & Underwriting Requirements
To participate on the bond, companies must first be an individual member of FIATA or a member of a FIATA association in their country of domicile. To apply, please email firstname.lastname@example.org with the following items:
- Signed and completed FIATA Group Bond Programme Application & Indemnity Agreement
- Current membership certificate from FIATA or a FIATA association member
- Evidence of Cargo Legal Liability and Errors & Omissions Insurance (It is not required for your insurance to be written with Avalon)
- We may also require evidence that your FMC registration has been approved
|Download FIATA Group Bond Application|
|FIATA Group Bond Application & Indemnity||Word|
Annual premium for the FIATA Group Bond is 0.9% of a participant’s individual bond limit. For example, unlicensed non-U.S. NVOCCs must obtain a $150,000 bond, providing for a $1,350 annual premium. Each invoice includes a $25 payment processing fee. Initial invoices are pro-rated based on effective date to the following 1 December, when the group bond renews for all participants.
Bondholders benefit from a quick, streamlined underwriting process, competitive rates and for qualifying members, the elimination of surety collateral requirements. You also receive:
- One point-of-contact for the administration of the FIATA Group Bond.
- Regulatory guidance on FMC and CBP issues.
- Assistance in securing other bonds (e.g., CBP C2, C3). Additional underwriting requirements apply.
By November of each year, participants will be notified via email of the upcoming renewal period. Renewal requirements were crafted to provide Avalon with the necessary underwriting information to protect the group bond, while minimizing the administrative burden placed on participants.
Avalon does reserve the right, however, to remove a participant at any time for underwriting reasons. If this becomes necessary, Avalon will provide the required 30 days notice to the participant and to the FMC.