Transportation Broker Bonds

What Are Transportation Broker Bonds? 

Transportation broker bonds are a financial guarantee that brokers will conduct business ethically. They ensure safe and legal transportation practices and guarantee pay to carriers. 

These bonds are often similar to freight broker bonds but are state-specific. While freight brokers specialize in freight transportation on a federal level, transportation bonds focus on specific states and their state-level transportation industry regulations.

Freight Broker Bond vs Transportation Broker Bond

A BMC-84 freight broker bond is a federal bond associated with Federal Motor Carrier Safety Administration licenses. Since the freight broker industry handles inter-state business relations, it protects consumers and drivers more broadly across state lines. 

However, transportation broker bonds are niche and vary state-to-state. These bonds are for specific transportation industries and purposes based on varying laws, licenses and regulations. State specific bonds may cover transportation brokers who don’t need to hold the federal license. 

How Much Do Transportation Broker Bonds Cost?

Transportation broker bond coverage requirements vary by state. With good credit, most applicants pay a premium of just 1-5% of the bond amount.  

Additionally, you can save up to 25% by selecting a multi-year term on eligible bonds. Select your state below to see bonding requirements and cost.

How Do Transportation Broker Bonds Work? 

When you purchase a transportation broker bond, you enter a legal agreement between three parties:

1. Principal: You, the transportation broker
2. Obligee: The governement agency requiring the bond
3. The Surety: The entity issuing the bond

If bond terms are broken, harmed parties can file a claim. The surety will pay valid claims up to the bond amount and the principal must then reimburse the surety.

Who Needs a Transportation Broker Bond? 

Some states require a transportation broker bond for licensing. If you arrange transportation of goods, passengers, or construction equipment for motor carriers, you might need a transportation broker bond. 

Transportation broker bonds are not required for the motor carriers, but the brokers arranging transport. 

*Note: If you are a freight broker in any U.S. state, you need a federal BMC-84 bond.

How to Get a Transportation Broker Bond 

Most state-level transportation broker bonds require a quick application to get a quote, and are typically processed within one business day. 

For some states however, like Virginia and North Carolina, everyone qualifies for the same rate and you can purchase online in minutes. To get your transportation broker bond, follow these quick steps:

1. Select the applicable state
2. Apply for a quote online (if required)
3. Pay the premium
4. File your bond with the obligee

How Do I Renew My Transportation Broker Bond?

Transportation broker bonds expire annually unless a muti-year term is selected. Starting 90 days before the expiration date, a SuretyBonds.com representative will contact you about the renewal process. Refer to our Surety Bond Renewal Guide for more information.

How Do I Update My Transportation Broker Bond Form? 

You can often update simple information on your bond through a bond rider. This is the only legal method of updating without invalidating the original bond. 

If you need to update any bond information, emailing our support team at [email protected]. Read our Understanding Bond Riders Guide to learn more. 

Can I Get Bonded With Bad Credit?

Credit isn’t always everything. SuretyBonds.com works hard to approve 99% of applicants. 

If you’re worried about having a lower credit, read about our Bad Credit Bonding Program and see if you qualify for our premium financing plan.