BMC-84 Freight BrokerSurety Bond
Every property broker operating in interstate commerce must maintain a $75,000 BMC-84 surety bond to obtain and keep FMCSA operating authority. Get approved in 24 hours with rates starting at $750/year.
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What is a BMC-84 Freight Broker Bond?
The BMC-84 freight broker surety bond requirement stems from 49 U.S.C. § 13906(b), which mandates that the Secretary of Transportation may register a person as a broker only if they file adequate financial security. The implementing regulations at 49 CFR § 387.307 specify that brokers must maintain either a surety bond (Form BMC-84) or trust fund agreement (Form BMC-85) for exactly $75,000, regardless of the number of branch offices or sales agents.
The Moving Ahead for Progress in the 21st Century Act (MAP-21), signed into law on July 6, 2012, transformed the freight brokerage landscape by increasing the required bond amount from $10,000—unchanged since the 1970s—to $75,000 effective October 1, 2013. Congress enacted this 7.5-fold increase to combat broker fraud, protect motor carriers from non-payment, and create a meaningful financial barrier against unscrupulous operators entering the industry.
Critical Understanding
The bond's purpose is explicitly stated in 49 CFR § 387.307(b): to "ensure the financial responsibility of the broker by providing for payments to shippers or motor carriers if the broker fails to carry out its contracts, agreements, or arrangements." The bond protects claimants, not the broker's business interests.
Who Must Obtain a Freight Broker Bond?
The regulatory definition at 49 CFR § 371.2(a) is precise: a broker is "a person who, for compensation, arranges, or offers to arrange, the transportation of property by an authorized motor carrier."
Freight Brokers
Never take possession of cargo and bear no direct transportation liability—simply connect shippers with carriers.
Motor Carriers
Physically transport goods, operate commercial vehicles, and must carry substantial liability insurance.
Freight Forwarders
Take possession of cargo, assume transportation responsibility, and require multiple coverages.
Who is Exempt from Bonding?
BMC-84 Bond Pricing by Credit Score
Bond premiums represent a percentage of the $75,000 face amount, not the full bond value. Personal credit score is the primary underwriting factor.
| Credit Profile | Rate Range | Annual Premium | Notes |
|---|---|---|---|
| Excellent (750+) | 1.0%-1.5% | $750-$1,125 | Best rates available |
| Good (700-749) | 1.25%-2.5% | $938-$1,875 | Standard underwriting |
| Average (650-699) | 3%-5.5% | $2,250-$4,125 | Additional review |
| Fair (580-649) | 5%-8% | $3,750-$6,000 | More documentation |
| Challenged (<580) | 8%-15% | $6,000-$11,250 | Specialized programs |
Additional Underwriting Factors
3+ years qualifies for best rates
Assets, liabilities, cash flow reviewed
Prior claims significantly increase premiums
$1,500-$9,000 typical due to lack of history
BMC-84 Surety Bond vs BMC-85 Trust Fund
Approximately 99% of brokers choose the BMC-84 surety bond due to significantly lower capital requirements.
BMC-84 Surety Bond
RECOMMENDED- Upfront Capital: Premium only ($750-$11,250/year)
- Credit Check: Yes, determines premium rate
- Annual Cost: 1%-15% of bond amount
- Best For: Most freight brokers
- Processing: 24-hour approval typical
BMC-85 Trust Fund
- Upfront Capital: Full $75,000 deposit required
- Credit Check: No credit check required
- Annual Cost: Bank trustee fees (1-2%)
- Best For: Large, well-capitalized firms or those with very poor credit
- Processing: Longer setup time
January 2026 BMC-85 Changes
Effective January 16, 2026, significant restrictions take effect on BMC-85 trust funds. Trust funds must contain only cash, irrevocable letters of credit from FDIC-insured banks, or U.S. Treasury bonds. Loan and finance companies are removed as eligible trustees. The estimated 4,500 brokers using non-compliant BMC-85 arrangements must restructure or switch to BMC-84 bonds.
How to Obtain Freight Broker Authority
The complete process typically takes 4-6 weeks from initial application to active authority status.
Apply Through FMCSA Unified Registration System
1-2 daysSubmit your application at portal.fmcsa.dot.gov with your legal business name, address, principal/owner information, and business structure details. Pay the $300 non-refundable fee. Upon acceptance, FMCSA assigns your MC number.
Obtain and File Your BMC-84 Bond
24-48 hours approvalApply with a surety bond provider with your MC number, business information, and SSN for credit check. After underwriting and premium payment, the surety files your bond electronically with FMCSA. Bonds typically appear in FMCSA systems within 2-3 business days.
Designate Process Agents (BOC-3)
1-2 daysFile Form BOC-3 designating a process agent in every state where you conduct business or maintain an office. Brokers may designate themselves in their own state if they have a physical office location.
Wait Out the Protest Period
10+ daysYour application publishes in the FMCSA Register for 10 calendar days for public comment. After all filings are verified and the protest period closes without opposition, FMCSA activates your authority.
Important: You may NOT begin operations until your status shows "ACTIVE" in the FMCSA Licensing and Insurance system.
Indemnity Agreements and Personal Guarantees
Surety Bonds Function as Credit, Not Insurance
When a surety pays a claim against your bond, you must reimburse them for the full amount plus legal fees and investigation costs under the General Indemnity Agreement (GIA) signed during bond issuance. Failure to reimburse can result in bond cancellation, inability to renew, collection actions, and effective inability to continue operating.
Who Must Sign Personal Guarantees?
Sole Proprietors
Owner plus spouse must sign
Corporations
President + all owners with 10%+ stakes, plus spouses
LLCs
Managing members + all members, plus spouses
The spousal requirement exists because marriage legally joins assets—the guarantee prevents business owners from transferring assets to avoid repayment obligations. The indemnity agreement's joint and several liability provision means the surety can pursue any indemnitor for the full amount owed.
How the BMC-84 Claims Process Works
Key Point: Motor carriers and shippers—not brokers—benefit from bond protection. The $75,000 represents an aggregate limit, not a per-claim maximum, meaning total claims draw from the same pool regardless of how many claimants exist.
Valid Reasons for Claims
Claims Process Steps
- 1Claimant identifies the broker's surety through FMCSA's SAFER system
- 2Submit claim directly to surety with supporting documentation (rate confirmations, BOLs, proof of delivery, invoices, communications)
- 3Surety investigates and contacts broker for response (7 business days under 2026 rules)
- 4If valid, surety pays claim; broker must reimburse surety under indemnity agreement
When Claims Exceed $75,000
When total valid claims exceed the bond amount—common with distressed or fraudulent brokerages—the surety typically files an interpleader action in court. The court determines allocation among claimants on a pro-rata basis. For example, if you're owed $25,000 against $150,000 in total claims, you would receive ($25,000 ÷ $150,000) × $75,000 = $12,500. Claimants may pursue the broker directly for remaining amounts, though recovery prospects diminish with insolvent entities.
January 2026 Compliance Deadline
The Broker and Freight Forwarder Financial Responsibility rule (88 FR 78656) represents the most significant regulatory change since MAP-21.
Full Compliance Required: January 16, 2026
Immediate Suspension Procedures
If your bond falls below $75,000 due to a claim payment, you have just 7 calendar days to replenish it. Failure triggers operating authority suspension within 7 business days.
Surety Notification Requirements
Sureties must notify FMCSA within 2 business days of any payment that reduces coverage below the required $75,000 amount.
BMC-85 Trust Fund Restrictions
Trust funds must contain only cash, irrevocable letters of credit from FDIC-insured banks, or U.S. Treasury bonds—eliminating previously acceptable assets.
Enhanced Enforcement
FMCSA can suspend noncompliant surety providers for 3 years with penalties of $12,882 per violation.
Penalties for Operating Without a Bond
Continuous bond coverage is mandatory—broker registration "remains valid or effective only as long as a surety bond or trust fund remains in effect" per 49 CFR § 387.307(a). Any lapse immediately invalidates your authority to operate.
Brokers must maintain transaction records for three years per 49 CFR § 371.3, documenting consignor information, carrier details, bill of lading numbers, compensation received, freight charges collected, and payment dates.
BMC-84 Bond Premium Calculator
Estimate your annual premium based on credit score
Get an instant estimate for your $75,000 freight broker bond premium based on your credit profile
Important Calculator Notes:
• This calculator provides estimates based on typical market rates for BMC-84 freight broker bonds
• Your actual premium will be determined by detailed underwriting including credit analysis, financial statements, and business history
• The $75,000 bond amount is federally mandated by FMCSA and cannot be reduced
• Rates shown are annual premiums for continuous bond coverage
• Additional fees may apply for expedited processing or special circumstances
• This calculator does not constitute a quote or guarantee of coverage
Common Misconceptions About Freight Broker Bonds
"The bond protects my brokerage business"
Wrong. The bond exclusively protects shippers and motor carriers. Brokers needing business protection must purchase separate insurance products—general liability, contingent cargo insurance, and errors and omissions coverage.
"The bond covers cargo loss or damage"
Wrong. Contingent cargo insurance covers cargo loss or damage when a carrier's insurance fails or proves inadequate. The BMC-84 bond covers non-payment to carriers. The bond is mandatory; contingent cargo insurance is optional but strongly recommended.
"I can get my premium refunded if I cancel"
Usually wrong. Most sureties declare premiums "fully earned" at issuance. Some providers offer pro-rated refunds for unused time, but this is the exception. Trust fund deposits are retrievable after properly closing authority, though some trustees retain funds for extended periods.
"UCR registration is part of my bond"
Wrong. Unified Carrier Registration (UCR) is completely separate from bonding. Brokers must register annually through ucr.gov and pay the current fee of $46 per year for 2025-2026 in addition to maintaining their BMC-84 bond and operating authority.
Frequently Asked Questions
Common questions about BMC-84 freight broker bonds
What is a BMC-84 freight broker bond?
How much does a freight broker bond cost?
BMC-84 bond vs BMC-85 trust fund: Which should I choose?
How long does it take to get freight broker authority?
What happens if I operate without a freight broker bond?
What are the new 2026 BMC-84 compliance requirements?
Who can file a claim against my freight broker bond?
Do I need to personally guarantee a freight broker bond?
Official Government Resource
FMCSA Broker & Freight Forwarder Registration
Official registration requirements, forms, and regulations
Related Bond Types
Other license bonds for transportation businesses
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