Surety bonds hold business professionals responsible for acting ethically and lawfully while on the job. When it comes to freight broker bonds, the obligee requiring the bond is the U.S. government, the principal required to purchase the bond is the freight broker and the surety responsible for producing the bond is the underwriting company.
The Federal Motor Carrier Safety Administration (FMCSA) requires freight brokers and freight forwarders to get a $75,000 surety bond before receiving a license.
What Does a Freight Broker Bond Do?
In order to issue a freight broker license, the FMCSA requires all freight brokers and freight forwarders to file either a BMC-84 surety bond or a BMC-85 trust fund agreement. This requirement ensures that licensed freight brokers and forwarders are held to certain standards, as well as to prevent fraud and failure to pay motor carriers or shippers.
What's the Difference Between BMC-84 vs. BMC-85?
The primary difference between the BMC-84 bond and the BMC-85 trust fund is the cost. Freight broker bond premium is a percentage of the full amount of the bond, paid annually. The surety bond allows the business owner to legally register their brokerage, without posting $75,000 as collateral in a trust fund.
How Much Does a Freight Broker License Bond Cost?
For applicants with excellent credit, SuretyBonds.com can issue these bonds for as little as $938 in many states. Brokers wanting to renew their bond may qualify for the best available premium after a year or two of conducting business without having any claims filed against the bond. Since freight broker bonds are inherently risky, underwriters must review all applicants’ credit and financials in order to determine an appropriate premium required to write the bond.
How Do I Apply for My Freight Broker Bond?
- Step 1: Apply online and let our surety experts do the rest.
- Step 2: Pay for your bond. We offer quick and easy online or phone payment options.
- Step 3: Receive your bond. We will instantly send you an email copy of your bond.
This bond is filed electronically by us and submitted directly to the FMCSA on your behalf. No physical copy of the bond is ever issued.
Have any questions concerning your freight broker bond?
Talk to a surety specialist today by calling 1 (800) 308-4358 or complete our bond request form online and an expert will contact you immediately.
