Alaska Freight Broker Bond

Freight brokers in Alaska must hold a $75,000 surety bond, known as a BMC-84 surety bond, to operate legally under federal FMCSA regulations. This financial guarantee protects carriers and shippers from losses caused by broker non-payment or contract violations. While Alaska doesn’t impose additional bond rules beyond the federal standard, brokers must still meet state licensing and registration requirements to stay compliant.

A freight broker bond, also called a BMC-84 bond, is a federal requirement enforced by the FMCSA to ensure freight brokers meet their payment and contractual obligations. While it applies nationwide, brokers operating in Alaska rely on it to build trust in the state’s unique and often logistically challenging freight environment.

The bond protects carriers and shippers by guaranteeing payment for services rendered, reducing financial risk, and promoting reliable business practices. Even though Alaska doesn’t impose additional bond requirements, maintaining this federal bond is essential for legal and responsible operations.

To operate as a freight broker in Alaska, you must comply with FMCSA broker registration standards and Alaska’s business licensing laws. That means:

• Filing a BMC-84 surety bond or, alternatively, a BMC-85 trust fund, both satisfying the $75,000 financial responsibility requirement.
• Appointing a BOC-3 process agent to represent your business in every state where you operate.
• Registering your brokerage through the Alaska Department of Commerce, Community, and Economic Development, which oversees business licensing and compliance.

Eligibility depends on demonstrating financial stability and maintaining active broker authority with the FMCSA. Brokers must also keep their Unified Carrier Registration (UCR) current to avoid interruptions. Together, these steps confirm that brokers in Alaska meet both federal and local standards for lawful freight operations.

Alaska generally follows federal FMCSA bond standards without adding extra surety obligations. However, before securing your bond, you must obtain an Alaska business license through the Alaska Department of Commerce.

Brokers handling intrastate freight, shipments that begin and end within Alaska, must still maintain FMCSA registration if they also handle interstate shipments. The state may cross-check compliance using UCR filings, ensuring that all operations align with both federal and state transportation rules.

The bond amount is fixed at $75,000, but brokers pay only a percentage annually, known as the bond premium. The rate typically ranges between 1% and 5% of the total bond value, depending on your credit, financials, and business experience.

Typical costs based on credit profile:

• Good credit: 1 -5 % → $750 to $3,750 per year
• Poor credit: 5–15% → roughly $3,750 to $11,250 per year

Premiums are based on an underwriting review that considers your credit profile and financial background. Working with an established surety like Lance Surety ensures transparent pricing and continuous coverage, as explained in our guide to surety bond cost.

The bonding process is simple once you’ve completed FMCSA registration and obtained your Alaska business license.

1. Submit an application through a licensed surety provider.
2. Provide your FMCSA authority number, state business license, and basic financial information.
3. The surety company reviews your credit and financials.
4. Once approved, your provider files the BMC-84 bond directly with FMCSA to activate your broker authority.

Choosing a provider experienced in transportation and compliance bonds ensures accuracy and speed throughout the process. For a closer look at the steps involved, see how brokers typically get bonded through Lance Surety’s system.

Yes. Even if your credit history isn’t perfect, you can still qualify for an Alaska freight broker bond through bad-credit bonding programs offered by select sureties. These programs assess your overall financial profile instead of relying solely on credit scores.

You can improve your approval odds by:

• Providing business financial statements or collateral.
• Showing consistent income and steady cash flow.
• Avoiding unpaid debts or recent bankruptcies.

Improving your credit over time can significantly reduce your premium at renewal. Many brokers who begin under high-risk programs transition to lower rates within a year or two of maintaining good payment history.

Freight broker bonds must be renewed each year to maintain FMCSA compliance. Surety providers typically send renewal notices 30–60 days before expiration to ensure continuous coverage.

If a claim is paid from your bond, you must reimburse the surety to restore the bond’s full $75,000 coverage. Allowing your bond to lapse or remain underfunded may result in FMCSA suspending your broker authority. Staying current with payments and avoiding claims keeps your business in good standing and may even lower your next renewal rate.

Is the freight broker bond an Alaska law or a federal requirement?

It’s a federal requirement under FMCSA regulations, not specific to Alaska.

Do I need a separate Alaska business license before getting bonded?

Yes. Alaska requires a valid state business license before you can apply for or renew your bond.

How quickly will I get authority after filing proof of bond?

Typically, authority is granted within three to five business days after the surety files your bond with the FMCSA.

What happens if a claim is paid on my bond in Alaska?

The surety initially pays the claim, but you, as the broker, are responsible for reimbursing the surety to restore the bond’s full coverage.

Federal Motor Carrier Safety Administration. (n.d.). Broker registration. Retrieved from
https://www.fmcsa.dot.gov/registration/broker-registration

Alaska Department of Commerce, Community, and Economic Development. (n.d.). Business licensing. Retrieved from
https://www.commerce.alaska.gov/web/cbpl/

Lance Surety Bonds. (n.d.). Freight broker bonds. Retrieved from
https://www.lancesuretybonds.com/license-bonds/freight-broker-bonds

Lance Surety Bonds. (n.d.). Surety bond cost. Retrieved from
https://www.lancesuretybonds.com/learn/surety-bond-cost

Lance Surety Bonds. (n.d.). How to get bonded. Retrieved from
https://www.lancesuretybonds.com/learn/how-to-get-bonded

Lance Surety Bonds. (n.d.). An application. Retrieved from
https://www.lancesuretybonds.com/surety-bond-quote