The Oregon Grain Warehouseman Bond is required by the State of Oregon Department of Agriculture to operate a warehouse that will store all types of grains. The Warehouseman Bond exists to protect the public (tenants) from the damages suffered from the grain warehouse, such as shortages or spoilage of their stored grains.
Jet Insurance has many advantages, the most important is that we are a direct provider with no agent or broker middleman between you and your bonding requirement.
With Jet the best price for the bond is $200 for the $20,000 bond limit requirement. Below are some examples of preferred pricing at different limits.
The bond premium is based on the bond limit, personal credit of the ownership and years in business. Jet has the most competitive prices as we are cut out brokers and agents who collect commissions as middlemen in the surety bond process.
For larger bond premiums, Jet has a monthly payment plan option to make obtaining the bond simple and affordable. No down payments needed or APR’s like other carriers who use third party financing companies and guess what- those financing companies have fees too.
The amount of the bond required under Section 586.300 of the Oregon Revised Statutes, is the sum equal to the total number of bushels of rated grain storage capacity multiplied by 20 cents rounded up to the nearest $1,000. For example, if the maximum number of bushels is 200,000 in the warehouse the bond amount would be $40,000 The minimum bond amount $20,000 and the maximum amount $500,000.
At Jet we will file the bond for you to the Department of Agriculture and can get it to them today, if needed via email. The hard copy would follow to the Department or to you if you are a new licensee. Typically, other carriers leave the filing to the principal on their own dime. Jet will send the bond document to be filed at the following address:
State of Oregon Department of Agriculture
635 Capitol St NE
Salem, Or 97301
When dealing with Jet Insurance Company cancelling your bond you can! You get a prorated refund with no minimum earned, no broker cancellation fees and no broker commissions withheld. When you have selected the payment plan the cancellation is simple. You cancel and stop paying and we cancel the bond.
In all cases a principal can avoid claims by doing business in an honest manner. Grain Warehouses must pay their bills and in this case make sure the commodities that are under his possession are managed properly. For example, if some of the grain that has been stored by someone renting space is missing the Department will be notified. The principal will be notified. If the principal immediately rectifies the situation there will be no claim on the bond. If there is contamination of the product, the Principal shall replace or pay for the product, thereby avoiding the claim.
If in the unfortunate event there is a claim filed on your bond Jet notifies the claimant of the bond and will begin gathering information. We will begin the period of investigation to determine the validity of the claim. If the Department of Agriculture deems a violation is valid, Jet may have little recourse but to pay the claim amount up to the limit.
If a Surety company (Jet) makes a bond payout, the principal (grain warehouse) is still ultimately responsible for their actions and must pay the surety back. If there is no reimbursement to the Surety your bond will be cancelled and the license will be in jeopardy.
While other carriers may try to avoid legal fees by quickly paying claims and then seeking reimbursement from the warehouseman, Jet prefers to help the principle resolve claims amicably with the claimant, and ideally avoid them altogether.
Further you can get a more comprehensive explanation of the claim in the Oregon Statues 586.210 to 586.730.
The State of Oregon Department of Agriculture exists to keep watch over all agricultural industries in this case grain warehouseman. The bond is protecting the Department and the public from fraud or mistakes caused by the warehouseman such as missing grain of one of the tenants of the warehouse. The bond itself provides financial protection for a claim filed with the Department or against the Warehouseman. The bond will pay the claim up to the price of the bond.
We will need to know the bond amount required and basic business information prior to underwriting the bond. You will be able to purchase online and receive a copy of your bond right shortly after submitting the online application. If your bond needs to be prorated, you can either pay a prorated amount of select the monthly option.
Agents and brokers will need to shop the bond price and in many cases will add a brokers fee, unlike Jet who can offer the bond directly to you without delay and never charges fees.
The bond expires every year on June 30th. A new bond must be filed to replace the prior bond each year. Jet will have this automatically as long as the annual of monthly premium payment is made.
For bonds on annual terms, Jet also sends notice well in advance so you will not miss the opportunity to renew the bond and create a lapse.