BMC-84 Freight Broker Bond Guide

If you want to work as a freight broker or freight forwarder in the U.S., you must have a freight broker bond. This bond is officially called a BMC-84 surety bond, and it’s required by the Federal Motor Carrier Safety Administration (FMCSA).

The FMCSA uses the bond to make sure brokers follow the rules and pay carriers and shippers as agreed. Without a bond, you can’t get or keep your broker license.

A freight broker bond is a type of license and permit surety bond. It protects motor carriers and shippers if a broker breaks the rules—like failing to pay for services or committing fraud.
 

• The FMCSA requires all brokers to carry a $75,000 bond.
• This bond acts as a financial guarantee that brokers will follow the law.
• If a broker doesn’t hold up their end, the bond pays out claims to those harmed.

A freight broker bond is a three-party agreement:
 

• Principal: The freight broker who buys the bond
• Obligee: The FMCSA, who requires the bond
• Surety: The company that issues the bond and pays claims if needed

If the broker fails to pay a carrier or breaks FMCSA rules, the harmed party can file a claim. If the surety pays out, the broker must repay the surety.

While the required bond amount is $75,000, you don’t have to pay that full amount up front. Instead, you pay a small percentage of it—called the bond premium.

Typical Cost Range

Your premium is based on risk. Most freight brokers pay between 1% and 12% of the bond amount per year:

The cost of your freight broker bond is determined by a range of factors, including but not necessarily limited to:
 

• Personal credit score
• Financial history
• Business experience
• Any past claims or unpaid debts
• Whether collateral is required (rare for most applicants)
   

Who Sets the Price?

Your rate is based on a surety company’s review of your application. They look at risk factors, like how likely it is that you’ll pay your bills and avoid claims.

We work with top-rated sureties and use a secure online platform to get you the lowest available rate.

To become a licensed freight broker or freight forwarder in the U.S., you must meet FMCSA bonding rules. The bond requirement comes from the MAP-21 law, which set the current $75,000 minimum in 2013.

Who Requires the Bond?

The Federal Motor Carrier Safety Administration (FMCSA) requires the freight broker bond as part of the licensing process. Without it, you won’t receive or maintain operating authority.

What Forms Are Involved?

You’ll need to complete these filings:
 

• Form OP-1: Initial application for broker authority
• Form BMC-84: Surety bond filing (electronic)
• Form BMC-36: Filed by the surety if the bond is canceled

All forms are filed through the FMCSA’s Unified Registration System (URS).

When Must the Bond Be Active?

Your bond must be in place before the FMCSA issues your broker license. If the bond is canceled or expires, your authority can be revoked immediately.

Getting a freight broker bond is a fast process when you have the right documents ready. Most approvals happen within 24–48 hours.

Step-by-Step Process

1. Apply Online
    Complete a short surety bond application. It asks for business details, ownership info, and your MC number if available.
2. Underwriting Review
    The surety company reviews your:
   • Credit score
   • Business financials
   • Industry experience
   • Any tax liens, civil judgments, or past bond claims
3. Get a Quote
    You’ll receive a bond quote based on risk. Rates for qualified applicants start at $938 per year.
4. Purchase the Bond
    Once you accept the quote and pay the premium, the bond is filed electronically with the FMCSA through the BMC-84 form.

What You’ll Need
 

• Legal business name and address
• MC number or USDOT number (if already applied)
• Personal credit and financial info
• Contact details for your broker business

We work with a large network of A-rated surety companies to get the best rate—fast.

Yes — even if your credit isn’t perfect, you can still get bonded. We offer special programs for applicants with credit scores below 650 or limited financial history.

How Credit Affects Your Rate

Your personal credit is the main factor that affects your bond premium. Other things that can impact approval include:
 

• Unpaid debts
• Tax liens
• Civil judgments
• Bankruptcies
• Lack of industry experience

Applicants with poor credit typically pay between 5% and 12% of the $75,000 bond amount—up to $9,000/year.

How to Improve Your Rate Over Time

Once you build a clean payment history and renew your bond on time, your rate can drop at renewal. Many brokers qualify for lower premiums after their first year in business.

Freight brokers have two options to meet the FMCSA’s $75,000 financial security requirement:
 

• BMC-84: A surety bond
• BMC-85: A trust fund agreement

Most brokers choose the BMC-84 bond because it’s more flexible and affordable.

BMC-84 Surety Bond
 

• You pay a yearly premium (starting at $938)
• No need to tie up $75,000 in cash
• Backed by a licensed surety company
• Easier for new or small brokers to afford
• Financial guarantee provided by the surety
   

BMC-85 Trust Fund
 

• You must deposit the full $75,000 upfront
• Funds are held in a trust, often by a third party
• No annual premium — but your money is locked up
• May not be insured or regulated like a surety bond
• Can be risky if the trust company becomes insolvent
   

Bottom line: The BMC-84 bond is the better option for most freight brokers. The biggest difference between a BMC-84 bond and a BMC-85 fund is that the bond provides protection without tying up large amounts of working capital.

A freight broker bond protects motor carriers and shippers if a broker fails to pay or violates a contract. If this happens, the harmed party can file a claim against the bond.

What the Bond Covers
 

• Unpaid freight charges
• Contract violations
• Fraud or dishonest business practices

How the Claims Process Works
 

1. Carrier or shipper files a claim
2. The surety company investigates the issue
3. If valid, the surety pays up to $75,000
4. The broker must repay the surety for the claim amount

Why It Matters

A bond claim can lead to:
 

• Loss of your license
• Higher bond costs in the future
• Legal action if you fail to repay
   

Need to protect your record? We help brokers resolve claims quickly and stay compliant.

Your freight broker bond is valid for one year and must be renewed annually to keep your license active.

When to Renew
 

• The surety will send a renewal notice before your bond expires
• You must pay your renewal premium on time
• If your bond lapses, the FMCSA may revoke your broker authority

How Renewal Works
 

1. The surety reviews your updated credit and claims history
2. You receive a new quote (your rate may go down if your record is clean)
3. Once renewed, the bond is refiled with the FMCSA

Other Maintenance Tasks
 

• Update your company info (ownership, name, address) if anything changes
• Cancel your bond in writing if you’re exiting the business — but note the surety must give the FMCSA 30 days’ notice

How to Check Your Bond Status

Visit the FMCSA’s Company Snapshot tool and search by MC number or USDOT number. Under “Insurance on File,” look for “YES” next to the BMC-84.

Yes. While a freight broker bond protects shippers and carriers, it does not protect your own business. That’s where insurance comes in.

Common Types of Freight Broker Insurance
 

• Contingent cargo insurance: Covers damage or loss if the carrier’s policy doesn’t
• General liability: Protects against lawsuits or property damage
• Errors and omissions (E&O): Covers mistakes in paperwork or scheduling
• Auto liability (if you also operate as a carrier)

Why Both Bond and Insurance Matter
 

• The bond satisfies FMCSA rules and protects others
• Insurance protects you and your business
• Together, they reduce risk and show your clients you’re reliable

We can connect you with freight broker insurance providers if you need help getting coverage.

Once your bond is issued, it’s filed electronically with the FMCSA using Form BMC-84. You can check its status anytime online.

Use the FMCSA Company Snapshot Tool
 

1. Go to https://safer.fmcsa.dot.gov/
2. Search by MC number or USDOT number
3. Look for the section labeled “Insurance on File”
4. Make sure it shows “YES” next to the BMC-84

How Long Does It Take to Appear?

After filing, your bond usually shows up in the system within 2–3 business days. Don’t operate until the FMCSA confirms it’s active.

Need help? We’ll verify your bond is properly filed and active before you move forward.

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