BMC-84 Freight Broker Bond: Everything You Need to Know
If you’re a freight broker or looking to become one, you’ve likely come across the BMC-84 Freight Broker Bond requirement. This surety bond is an essential step in obtaining your freight broker license and maintaining compliance with FMCSA regulations. But what exactly is a BMC-84 bond, how does it compare to a BMC-85 trust, and what are the financial requirements? In this guide, we’ll break it all down for you.
What Is a BMC-84 Freight Broker Bond?
The BMC-84 bond is a surety bond required by the Federal Motor Carrier Safety Administration (FMCSA) for all freight brokers and freight forwarders operating in the U.S. This bond provides financial protection to carriers and shippers, ensuring that brokers uphold their agreements and compensate carriers for services rendered.
In simple terms, the BMC-84 bond acts as a safety net. If a freight broker fails to pay a carrier for transportation services, the carrier can file a claim against the bond to receive payment.
BMC-84 vs. BMC-85: What’s the Difference?
Freight brokers have two options to meet FMCSA’s financial security requirements:
- BMC-84 Surety Bond: Requires brokers to secure a $75,000 surety bond from a bonding company or surety provider.
- BMC-85 Trust Fund: Requires brokers to deposit $75,000 into a trust account.
The key difference? The BMC-84 bond requires only a small premium payment (typically a percentage of the bond amount), while the BMC-85 trust locks up a full $75,000 in an account, which can limit cash flow.
For most brokers, the BMC-84 bond is the preferred choice since it requires significantly less upfront capital.
Who Needs a BMC-84 Freight Broker Bond?
If you’re applying for freight broker authority, you must secure a BMC-84 bond as part of the FMCSA registration process. This requirement applies to:
- Freight brokers arranging the transport of goods.
- Freight forwarders who take responsibility for shipments.
Failure to comply with FMCSA’s bonding requirements can result in revocation of your freight broker license and suspension of operations.
Freight Broker Compliance & Bond Filing Requirements
Staying compliant as a freight broker involves more than just securing a BMC-84 bond. FMCSA has strict bond filing requirements that brokers must meet to avoid penalties or license suspension.
- FMCSA Compliance: Once you obtain your BMC-84 bond, you must file it with FMCSA electronically using the FMCSA Licensing & Insurance (L&I) system.
- Ongoing Compliance: Brokers must ensure their bond remains active each year. Failing to renew your bond on time can result in license revocation and business disruptions.
- BMC-84 Bonding Companies: Working with a trusted surety bond provider can help you stay on top of renewals, filings, and FMCSA compliance.
Need help with filing? Bonding Solutions ensures your BMC-84 bond is submitted correctly and on time!
How Much Does a BMC-84 Bond Cost?
While the BMC-84 bond amount is set at $75,000, brokers don’t need to pay the full amount upfront. Instead, you’ll pay a bond premium, which is typically a percentage of the total bond amount.
Cost factors include:
- Credit score (higher scores qualify for lower rates).
- Financial history and business experience.
- Bond provider or surety company.
On average, BMC-84 bond premiums range from $900 to $2,500 per year, depending on risk factors.
How to Obtain a BMC-84 Bond
Securing a BMC-84 Freight Broker Bond involves these simple steps:
- Choose a reputable surety bond provider (like Bonding Solutions!).
- Submit an application with your business details.
- Undergo a financial review (credit score, business financials, etc.).
- Receive your bond quote and pay the premium.
- File the bond with FMCSA to complete your freight broker registration.
Once approved, your surety bond remains active for one year and must be renewed annually.
Freight Broker Liability & Financial Protection for Shippers & Carriers
A BMC-84 bond doesn’t just protect carriers and shippers—it also helps freight brokers stay financially responsible. Understanding freight broker liability is key to avoiding legal and financial risks.
- Who is financially protected? If a freight broker fails to pay a carrier, the bond ensures shippers and carriers can file a claim and recover their funds.
- Freight Broker Liability: If a claim is filed against a BMC-84 bond, the surety company may investigate the claim before making a payout.
- How to Get a Freight Broker Bond with Bad Credit? Some brokers worry about credit scores affecting their bond approval. At Bonding Solutions, we offer flexible solutions for all credit types.
Need expert guidance? Get in touch today to secure your BMC-84 bond with competitive rates!
Why Work with Bonding Solutions?
Bonding Solutions specializes in surety bonds for freight brokers, ensuring a fast and hassle-free process. Here’s why brokers trust us:
- Competitive BMC-84 bond rates.
- Quick approvals, even for those with credit challenges.
- Expert support in filing with FMCSA.
- Flexible payment plans to fit your business needs.
- Stay Compliant & Keep Your Freight Broker Business Moving
Obtaining a BMC-84 Freight Broker Bond is a necessary step to operate legally in the transportation industry. By partnering with a reliable surety bond provider, you can meet FMCSA compliance, protect carriers and shippers, and focus on growing your brokerage.
Need a BMC-84 bond quote today? Contact Bonding Solutions to get started with fast approvals and competitive rates.