What is a Freight Brokers Bond (BMC-84)?
A freight broker bond (BMC-84) guarantees payment to motor carriers and shippers in the event a freight broker fails to meet the requirements of the agreement or contract. Effective as of October 2013, the Federal Motor Carrier Safety Administration (FMCSA) requires all freight brokers and freight forwarders to post a $75,000 Freight Brokers Surety Bond. Prior to the Moving Ahead for Progress in the 21st Century Act (MAP-21), passed in 2012, the bond amount required was $10,000. Failure to obtain the correct surety bond may result in having your brokers license revoked by the FMCSA.
As an alternative to a Freight Brokers Bond, you may obtain a brokers trust agreement (BMC-85). These trust fund agreements require that you provide $75,000 in collateral (cash or liquid assets) to be held in a trust, for the duration of your license.
What does a freight brokers bond cost?
Surety bond costs for freight brokers and forwarders is based on a review of the business owners personal credit, as well as an evaluation of their experience in the industry. The best surety bond companies provide freight broker bond rates as low as 1% of the bond amount required (as low as $750/yr).
How do I get my freight brokers bond?
You do not need an MC# to get your feight brokers bond. However, these bonds are filed electronically with the FMCSA, so you will need your MC# as soon as the bond is issued.
Related Surety Bonds
In addition to your freight broker’s bond (BMC-84), you may need one or more of the following surety bonds:
- Fuel Tax