Indiana Freight Broker Bond

Operating as a freight broker in Indiana means you need a freight broker bond, but it’s important to know this is mainly a federal FMCSA requirement, not an Indiana-specific rule.

A freight broker bond (BMC-84) is a type of surety bond that guarantees brokers meet their financial and legal obligations. It protects shippers and carriers if a broker fails to pay for services or breaks contracts.

Indiana follows federal law, so brokers must have this bond to operate legally. It ensures carriers and shippers have protection and confirms the broker is properly registered with the FMCSA, allowing operations statewide and across the U.S.

Freight brokers operating in Indiana must comply with federal FMCSA regulations, which require a $75,000 BMC-84 surety bond to protect shippers and carriers against fraud or contract breaches. To qualify, applicants must:

• Be registered with the Federal Motor Carrier Safety Administration (FMCSA) as a broker.
• Secure a BMC-84 bond from a licensed surety provider.

Indiana’s approach mirrors the national standard, with eligibility tied to the broker’s ability to provide fair and reliable services. Indiana also enforces local compliance measures, so brokers must check with state agencies or reference federal licenses and permits for up-to-date guidelines.

Freight brokers operating in Indiana must primarily comply with federal FMCSA regulations, including obtaining a $75,000 BMC-84 surety bond. In addition, brokers must follow state-level administrative requirements, such as:

• Registering their business with the Indiana Secretary of State
• Filing appropriate tax documentation with the Indiana Department of Revenue
• Obtaining any industry-specific permits required for intrastate operations
   

While Indiana does not impose additional bond requirements beyond the federal BMC-84, careful attention to state statutes and administrative rules helps ensure smooth business operations. Always reference official government agency websites for up-to-date compliance guidance.

Securing an Indiana freight broker bond involves several cost factors. The bond’s statutory amount is $75,000, but most freight brokers pay only a small fraction annually based on their financial profile, typically between 1%–5% of the total bond value. This means annual premiums commonly range from $750 to $3,750. Applicants with excellent credit can expect costs on the lower end, while those with less favorable financial histories see higher premiums. Factors affecting pricing include:

• Personal credit score
• Business financial strength
• Previous bond history
• Length of business operation

Applying for an Indiana freight broker bond is a straightforward, step-by-step process. Start by registering as a broker with FMCSA and gathering all required documentation, including your USDOT number and proof of business entity. Next, choose a reputable surety provider and complete their surety bond online application.

Documentation required often includes:

• Broker’s business details
• Proof of FMCSA registration
• Financial statements or credit report

Once approved, the bond is filed electronically with FMCSA as a BMC-84. Many providers offer digital application and fast turnaround, helping Indiana freight brokers start operations without delay.

Even brokers with below-average credit can secure a freight broker bond through specialized surety programs. While higher-risk applicants face premiums in the 5%–15% range and more scrutiny of their financials, approval is possible if they:

• Present current financial documentation
• Demonstrate relevant industry experience
• Choose surety providers specializing in high-risk profiles
   

To boost approval chances, brokers should resolve outstanding debts, collect strong trade references, and provide full transparency during the application process. Low-credit bond options enable startups and new entrants to comply with Indiana law regardless of credit rating.

Freight broker bonds must be renewed annually to keep your FMCSA operating authority active. Most surety providers send renewal notifications 30–60 days before expiration to ensure continuous compliance.

• Reviewing the current bond status and collecting updated business information
• Paying the annual premium, which may be adjusted based on financial changes or credit improvements
• Ensuring the bond remains active in the FMCSA system

Failing to renew on time can result in suspension of FMCSA authority, which disrupts business operations. Brokers should follow surety renewal instructions and maintain accurate records to streamline the process and avoid interruptions.

Navigating the bonding process is essential for Indiana freight brokers seeking legitimacy and long-term success. By understanding the $75,000 bond requirement, staying current with FMCSA, and choosing reputable surety providers, brokers can build a foundation of trust that drives growth. Remember, cost varies by credit score, explore digital applications and bad credit options for simplicity. Timely renewal ensures brokers remain operational and compliant year-round. Official resources and surety bond experts streamline each step, from application through annual renewals.

Here are brief answers to some common questions about Indiana freight broker bonds, clarifying claim procedures, validity, bond transfers, and payment options. These help freight brokers understand their obligations and options for compliance.

What happens if a claim is filed against my bond?

If a claim is made, the surety company investigates to determine its validity. Valid claims result in payment to the claimant, such as a shipper or carrier who suffered losses due to the broker’s failure to meet contractual obligations. The broker (principal) is then responsible for reimbursing the surety for the amount paid under the claim. Failure to repay can lead to legal action and additional costs.

How long are the Indiana Freight Broker Bonds valid?

Indiana freight broker bonds are valid for one year from the issue date. Brokers must renew their bonds annually to maintain compliance and avoid disruptions in their operating authority with FMCSA. The surety provider typically sends renewal notifications in advance to facilitate timely renewal.

Can the bond be transferred if ownership changes?

Freight broker bonds are generally non-transferable because they are tied specifically to the original business entity and its principals. If ownership changes, the new owner(s) must secure a new bond to meet legal requirements and ensure proper coverage under the freight broker operating authority regulations.

Are there options for multi-year bond payments?

While the bond itself is valid for one year, some surety providers offer multi-year premium payment plans or options to pay premiums in installments. This can ease the financial burden for brokers who prefer spreading payments over time, but the bond must still be renewed annually to maintain continuous validity.

These FAQs address key practical concerns for Indiana freight brokers seeking bonding clarity and maintaining compliance.

If further details are required or official forms needed, brokers can consult Lance Surety Bonds and FMCSA resources for comprehensive support.

SBA. (2025). Apply for licenses and permits. 
https://www.sba.gov/business-guide/launch-your-business/apply-licenses-permits

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