BMC-84 vs BMC-85: Surety Bond vs Trust Fund for Freight Brokers
Federal rules require freight brokers and freight forwarders to have $75,000 in financial security on file. You can meet that with a BMC-84 surety bond or a BMC-85 trust fund agreement. The bond has a premium (estimate only). The trust fund ties up $75,000 of your own money.
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- Who requires it: FMCSA, under 49 CFR 387.307, for freight brokers and freight forwarders.
- Amount: $75,000 either way (BMC-84 bond or BMC-85 trust fund).
- Trade-off: the bond has a premium; the trust fund ties up $75,000 of your own assets.
- Timing: prompt submission; most quotes within one business day.
BMC-84 vs BMC-85 in plain terms
Both forms satisfy the same $75,000 requirement under 49 CFR 387.307.
- BMC-84 is a surety bond. A surety pays valid claims up to $75,000, and you repay the surety. You pay a premium for the bond.
- BMC-85 is a trust fund agreement. You set aside the $75,000 yourself in cash, an irrevocable letter of credit or Treasury bonds that can be turned into cash within 7 days.
Comparison
| BMC-84 surety bond | BMC-85 trust fund | |
|---|---|---|
| What it is | Surety bond | Your own assets held in trust |
| Amount required | $75,000 | $75,000 |
| Cash tied up | None of your $75,000 | $75,000 |
| Ongoing cost | Premium; the carrier sets the final price | No premium, but the $75,000 cannot be used elsewhere |
| Approval | Underwritten by a surety | Must hold acceptable assets |
| Claim risk | You repay the surety for paid claims | Claims are paid from your fund |
| Form filed with FMCSA | BMC-84 | BMC-85 |
The premium is typically a small percentage of the bond amount per year; the carrier sets the final price. Your rate depends on your credit and the surety's review.
Which is better for new brokers?
For most new brokers, the BMC-84 surety bond: you keep your $75,000 for operating costs, carrier payments and growth, and you pay a premium. A trust fund makes sense mainly if you already hold $75,000 you will not need for years and want no premium. We shop multiple Treasury-listed surety carriers for your file.
Rules you should know
- Brokers and freight forwarders must keep the $75,000 in effect.
- Either party can cancel with 30 days' written notice to FMCSA.
- If claims or payments reduce the bond or fund below $75,000, the surety or financial institution must notify FMCSA within 2 business days, and operating authority can be suspended within 7 business days unless the shortfall is corrected.
Source: 49 CFR 387.307 (rules as of Sep 30, 2026).
How to get a BMC-84
- Fill in the short quote form above.
- We review your file with our carriers and send your quote.
- Approve it and pay when your bond is issued; the BMC-84 is filed with FMCSA.
Start with the freight broker bond guide. Forwarder, not broker? See the freight forwarder bond. Moving ocean freight? See the NVOCC / OTI bond.
Frequently asked questions
Is a BMC-84 the same as a BMC-85?
No. The BMC-84 is a surety bond. The BMC-85 is a trust fund agreement. Both satisfy the $75,000 requirement.
Do I pay the full $75,000 for a BMC-84?
No. You pay a premium (estimate only). The $75,000 is the bond amount, not what you pay.
What can back a BMC-85 trust fund?
Cash, an irrevocable letter of credit or Treasury bonds that can be turned into cash within 7 days (49 CFR 387.307).
What happens if a claim drops my bond below $75,000?
The surety or financial institution must notify FMCSA within 2 business days. Operating authority can be suspended within 7 business days unless the shortfall is corrected.
How do I cancel?
Either party gives 30 days’ written notice to FMCSA.
Do I pay before my bond is issued?
No. You pay only when your bond is issued.
Who needs a BMC-84 bond?
Property brokers of general commodities and household goods need a $75,000 surety bond (Form BMC-84) or trust fund (Form BMC-85) in effect; FMCSA will not register the broker until it is, under 49 CFR § 387.307(a). Freight forwarders face the same surety bond or trust fund requirement under § 387.403T, which applies the broker rules in § 387.307. The registration stays valid only as long as the bond or trust fund remains in effect.
Sources: 49 CFR Part 387 (eCFR) · 49 CFR Part 365 (eCFR)
Get my BMC-84 quote
We shop multiple Treasury-listed surety carriers. If one can't write your bond, we can take it to another.
Get my BMC-84 quotePrefer to talk? Call 1-844-810-2663
Free quote. Pay only when your bond is issued.
Sources (rules as of Sep 30, 2026)
Rules as of Sep 30, 2026. Requirements can change; confirm with the agency before you file. General information, not legal advice.