Freight Broker Bond (BMC-84): Requirements, Costs, and How to Apply

If you're starting a freight brokerage or freight forwarding business, you'll need a $75,000 surety bond (BMC-84) from the Federal Motor Carrier Safety Administration (FMCSA). Here's your complete guide.

## What is a Freight Broker Bond?

A freight broker bond (officially called a BMC-84 surety bond) is a $75,000 bond required by the FMCSA for all property brokers and freight forwarders operating in interstate commerce. It protects motor carriers and shippers if the broker fails to pay for transportation services.

## Who Needs a BMC-84 Bond?

You need a freight broker bond if you: - Arrange transportation of cargo for shippers - Act as an intermediary between shippers and carriers - Operate a freight forwarding business - Have an active FMCSA operating authority

## BMC-84 Bond Requirements

The bond must: - Be issued by a surety company authorized by the U.S. Treasury - Be in the amount of $75,000 (no lower amount is accepted) - Remain in effect as long as you hold your operating authority - Be filed electronically with the FMCSA

## How Much Does a Freight Broker Bond Cost?

Bond premiums typically range from 1.5% to 12% of the $75,000 bond amount:

**Good Credit (700+):** $1,125 - $2,250 annually **Average Credit (650-699):** $2,250 - $5,625 annually **Poor Credit (Below 650):** $5,625 - $9,000 annually

Unlike some bonds, freight broker bonds cannot be "instant issue" for most applicants due to the large bond amount and underwriting requirements.

## Steps to Get Your Freight Broker Bond

1. **Apply for FMCSA Operating Authority:** File form OP-1 with the FMCSA and pay the $300 filing fee.

2. **Process Agent Designation:** File form BOC-3 designating process agents in each state you'll operate.

3. **Obtain Your BMC-84 Bond:** Apply with a surety agency. You'll need business information, personal financial statements, and sometimes collateral.

4. **File the Bond with FMCSA:** Your surety company files the bond electronically. The FMCSA activates your authority once the bond is on file.

## BMC-84 vs BMC-85: What's the Difference?

- **BMC-84:** Surety bond form for brokers/forwarders - **BMC-85:** Trust fund agreement (alternative to the bond)

Most brokers choose the BMC-84 bond because trust funds require depositing $75,000 cash with an approved financial institution.

## Tips for Getting Approved

- Prepare personal financial statements - Have business plan ready - Consider providing collateral if credit is challenged - Work with an experienced surety agency

Need a freight broker bond? Call Can Do Surety Bonds at (609) 491-7404 for expert guidance and competitive rates.