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OTI Bonds

At Surety Bonds Agent, we offer a full range of surety bonds nationwide through an extended carrier network. Continue below to learn more about OTI bonds.  If you have additional questions or want to explore bonding solutions for your business, speak with one of our knowledgeable surety bond experts.

Contact Us for a Free OTI Bond Quote

It’s easy with our simple 3-step process:

  1. Apply Online
  2. Get Quote
  3. Receive Bond
about bond type

What Are OTI Bonds?

“OTI” stands for Ocean Transportation Intermediary, which is the maritime version of a freight forwarder. While a freight forwarder accepts cargo from a shipper and makes arrangements for it to be transported by a trucking company, an OTI accepts cargo from a shipper and arranges for it to be transported to or from the United States by sea. OTIs fall under the jurisdiction of the Federal Maritime Commission.

There are two types of OTIs: Ocean Freight Forwarders (OFFs) and Non-Vessel Operating Common Carriers (NVOCCs). The two terms often are used interchangeably, though there are some differences in the roles they play in America’s maritime supply chain.  So when someone speaks of an OTI bond, they could be talking about the surety bond an OFF needs or the one an NVOCC must purchase.

In either case, an OTI bond guarantees that the ocean transportation intermediary purchasing it will be legally responsible for damage to or loss of cargo resulting from the negligence or unlawful actions of the OFF or NVOCC who purchased the bond. The Federal Maritime Commission (FMC) can also file claims to recover fees or fines owed by the OFF or NVOCC.

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Purchasing an OTI bond is mandated by the Federal Maritime Commission (the bond’s “obligee”) as a prerequisite for licensing as an OFF or NVOCC. The bond is a guarantee by the OTI (the bond’s “principal”) to comply with the Ocean Shipping Reform Act and all applicable FMC regulations.

Licensed OFFs and NVOCCs, whether licensed in the U.S. or in another country, are required to purchase an OTI bond in the amount of $75,000. Not all countries issue licenses to NVOCCs, but unlicensed, non-U.S. NVOCCs must also purchase an OTI bond, though in the amount of $150,000.

img How Do They Work?

The third party to the legally binding OTI surety bond agreement, in addition to the obligee and the principal, is the “surety–the company guaranteeing that the principal will pay any valid claims.

The surety investigates all claims to ensure that only valid one are approved for payment.   The legal obligation to pay valid claims belongs entirely to the principal.  However, the surety typically pays claims initially, on behalf of the principal, to ensure a swift resolution. That initial payment creates a debt that the principal must subsequently pay back to the surety.

costs

What Do They Cost?

The annual premium for an OTI bond is calculated by multiplying the required bond amount by the premium rate set by the surety on a case-by-case basis. The main underwriting concern is the possibility that the principal will not readily repay the surety for claims paid on the principal’s behalf. The best measure of creditworthiness is the principal’s personal credit score, with a high credit score indicating a low risk of non-repayment.

With good credit, the principal typically pays a premium rate in the range of one to three percent. A lower credit score suggests higher risk, so the premium rate will be higher as well.

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Choose Bond by States

We proudly serve all 50 states, offering a full range of surety bonds. To buy surety bonds online:

  1. Choose your state
  2. Choose the bond type you need
  3. Apply online to request a free quote

There’s no obligation, and we can often help you get bonded in 24 hours or less.

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step by step guide

How Do OTI Bonds Work?

  • Choose Your Bond Type

    Select the bond you need — commercial, contract, or any specialized bond. We help you find exactly what is required in your state.

  • Submit a Quick Application

    Complete a short online form. It only takes a few minutes, with no extra paperwork or long verification steps.

  • Get Approved & Receive Your Bond

    Get fast approval and receive your bond instantly by email. Your document is ready to use right away.

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Why Work With Us?

Easy Application Process

Simply fill out our convenient online application form to get started.

Extensive Carrier Network

We work with a wide range of carriers to provide many options to our clients.

Competitive Rates

As an independent agency, we can leverage our carrier network to find the most competitive rates for the bonds you need.

Quick Turnarounds

We work to get you bonded as quickly as possible, often in 24 hours or less.

Exceptional Service

Our experienced surety bond agents provide personalized assistance to help you understand your bonding requirements and options.

Call us Today!

And get a free consultation.

866-362-6637
who we work with

Our Insurance Company Partners Nationwide

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Testimonials

What our customers say about us

Super easy process. I found the bond I needed in minutes and received the approved document the same day. Great experience overall.

Emily R., Business Owner
Contractor

The application was fast, the support team was responsive, and the pricing was clear. Very smooth and professional. Everything was explained clearly, and I appreciated how quickly I received my bond.

Jason M., Contractor
Small Business Owner

Super easy process. I found the bond I needed in minutes and received the approved document the same day. Great experience overall.

Emily R., Business Owner
Oberman & Oberman

The application was fast, the support team was responsive, and the pricing was clear. Very smooth and professional. Everything was explained clearly, and I appreciated how quickly I received my bond.

Jason M., Contractor
Oberman & Oberman

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