BMC-84 Freight Broker Surety Bond: What Is It?

BMC-84 Freight Broker Surety Bond and What Is It?

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Mandatory FMCSA requirement: All U.S. freight brokers must secure a $75 000 BMC‑84 surety bond to obtain broker authority.
Financial guarantee: Ensures brokers meet payment obligations to carriers and shippers, protecting against non‑payment or fraud.
Premium cost: Brokers typically pay 1–10% of the bond amount annually (≈$750–$7 500) based on credit and financials.
Coverage scope: Covers claims for unpaid freight charges, cargo loss, or contractual breaches up to the full $75 000 bond.
Application process: Apply through a licensed surety provider, undergo credit/financial review, and submit proof to the FMCSA electronically.
Renewal & claims: Bond renews annually; valid claims reduce available coverage until fully replenished by the broker.

Securing a surety bond is one requirement freight brokers must meet to comply with the FMCSA’s regulations for an operating authority. One option is the BMC-84 bond.

In this article, we’ll explain the BMC-84 property broker bond, including how it works, how much it costs, and how to get one. If you plan to launch a freight brokerage, understanding this bond is key to staying compliant and building trust in the industry.

What Is A BMC-84 Bond?

A BMC-84 bond is a $75,000 surety bond required by the Federal Motor Carrier Safety Administration (FMCSA) for anyone applying for a freight broker license in the United States.

This Interstate Commerce Commission (ICC) bond serves as a financial guarantee that the broker will follow all regulations and fulfill their contractual obligations, especially when it comes to paying carriers.

The bond is a safety net. If a licensed freight broker fails to pay motor carriers on time or violates FMCSA rules, the affected party can file a claim against the bond. If the claim is valid, the surety company will pay up to the bond amount, and then the broker must repay the surety.

The bond is between three parties:

Principal—you, the freight broker purchasing the bond
Obligee—the FMCSA, which requires the bond
Surety—the insurance company that issues the bond and guarantees payment if claims are made

Unlike liability and cargo insurance, a transportation broker bond does not protect the broker. Instead, it protects the parties who work with the broker, who might suffer financial harm.

Who Needs a BMC-84 Surety Bond?

Essentially, the BMC-84 bond is a legal requirement for obtaining brokerage authority. Specifically, you need a BMC-84 bond if you’re:

A broker arranging transportation services.
A freight forwarder handling domestic or international loads.
Anyone seeking or maintaining an operating license from FMCSA.
Required to maintain financial responsibility under federal regulations.

What are the requirements for BMC-84 freight broker surety bonds?

To qualify for a BMC-84 freight broker surety bond, you must meet specific requirements:

Valid business entity. You must operate as a legitimate business entity registered in your state.
Good standing. Your business must be in good standing with state and federal authorities.
Financial capacity. You must demonstrate the ability to pay the annual premium and maintain financial responsibility.
Clean record. You mustn’t have any violations of transportation regulations or Federal Motor Carrier Safety Administration (FMCSA) requirements.
Proper documentation. You must complete all filings and maintain accurate records.

The bonding process typically takes 1-3 business days for approval, though it can be faster for applicants with strong credit and financial profiles.

How Much Does a BMC-84 Freight Broker Bond Cost?

Although the BMC-84 bond covers $75,000, you don’t pay that full amount up front. Instead, you pay an annual premium, a small percentage of the bond amount. Depending on your personal and financial background, this cost typically ranges from 1% to 10% of the $75,000.

A major determinant of your bond premium is your credit score:

Excellent credit (700+ FICO): You’ll pay roughly 1 – 3% of the bond.
Fair to average credit (650–699 FICO): Around 1.5 – 5% of the bond.
Poor credit (below 650 FICO): Premiums can climb to and exceed 10%.

The following factors also affect how much your annual premium will be:

Industry experience. Freight brokers with years of experience usually get better rates than new brokers entering the transportation industry.
Financial stability. Your financial position and ability to pay claims influence the surety company’s risk assessment. Demonstrating strong financial health can reduce perceived risk.
Bond company. Different surety companies offer varying rates and terms. Their underwriting criteria affect the final cost.
Business structure. The type of business entity and its financial backing can impact pricing.
Claims history. You may be considered a higher risk if you’ve had past claims on other bonds.

How to Get a BMC-84 Bond

Obtaining a BMC-84 freight broker surety bond is a simple process you can complete online. You can secure your bond by following these steps:

Step 1: Check FMCSA requirements

Before applying for your bond, understand the freight broker bond requirements. Essential prerequisites and supplemental pre-registration filings include:

Submitting OP-1 for authority
Filing your legal process agent documents (Form BOC-3) to designate a process agent in every state where you operate
Paying the $300 FMCSA application fee
Obtaining your DOT number if operating commercial vehicles
Meeting all freight broker surety bond requirements

Step 2: Choose a reputable surety company

Choose a surety company that offers BMC-84 bonds and is authorized to offer surety bonds in your state. Research companies that specialize in freight broker surety bonds.

Look for companies with:

Strong financial ratings
Experience in the surety industry
Competitive pricing
Customer-focused insurance agents
Good customer service
Quick processing times

Step 3: Complete the application process

The application process requires providing necessary information such as:

FMCSA-issued MC (motor carrier) number and DOT number, if applicable
Personal and company contact information
Business license and entity documentation
Financial statements
Credit authorization
Details about your freight brokerage operations
Any relevant industry experience

Step 4: Receive a free quote

Once you have applied, the bond company will assess your information and provide a quote for the bond premium. If you are starting a new freight brokerage, you will get a free quote. The quote will give you an estimate of your bond cost based on the information you have provided.

Step 5: Premium payment

If you accept the quote, you’ll pay the bond premium to finalize the purchase. Most companies offer flexible payment options, including monthly or annual premium payments.

Step 6: Issuance & filing

Once the bond is approved, the bonding company issues the BMC-84 surety bond to you. Your surety provider will also electronically file the BMC-84 form with the FMCSA.

You can always verify your status on the FMCSA portal to confirm your bond is active and in good standing.

BMC-84 Bond vs. BMC-85 Trust Fund

The BMC-85 trust fund is another option freight brokers can use to meet the FMCSA’s $75,000 financial security requirement.

Both options serve the same purpose but work in very different ways. The table below highlights their differences.

	BMC-84 Bond	BMC-85 Trust Fund Agreement
Upfront cost	Annual premium (1%–10% of $75,000)	Full $75,000 cash deposit required
Who holds the funds	Surety company guarantees the funds	You deposit $75,000 with a trust company
Financial risk to you	Surety pays claims, you reimburse them	Claims are paid directly from your deposit
Capital requirements	Low initial cost	High capital commitment
Accessibility for new brokers	Easier to qualify with average credit	Harder without significant cash on hand
Refundable?	Premium is non-refundable	The trust fund can be returned if unused
Payment structure	Monthly or annual premium renewal	One-time deposit of $75,000

New brokers tend to go with the BMC-84 since it requires less upfront capital and is easier to manage when starting out. Instead of locking away $75,000 in a trust fund (as required by the BMC-85), brokers only need to pay a yearly premium.

This allows them to use their available funds to cover other important startup costs, such as software, insurance, marketing, and day-to-day operations.

Looking to start your freight brokerage from scratch? Check out our 90-Day Freight Broker Course. You’ll acquire all the skills and knowledge needed to launch and run a profitable and successful freight brokerage.

Freight Broker Bond FAQs

1. Can I switch from a BMC-85 trust to a BMC-84 bond later?

Yes. When renewing your freight broker authority, you can switch from a BMC-85 trust fund to a BMC-84 surety bond.

2. Does the BMC-84 affect my (business) credit score?

The BMC-84 bond typically doesn’t affect your credit score. However, maintaining a good payment history can affect your credit rating and future bonding capacity.

3. Is the BMC-84 bond refundable if I close my freight brokerage?

BMC-84 bonds are not refundable since they represent annual premiums paid for coverage. However, you can cancel the bond when you surrender your broker authority, which stops future premium payments.

4. What other types of insurance protect freight brokers?

General liability insurance. Covers claims related to property damage or bodily injury that might occur during your business operations.
Contingent Cargo Insurance. Protects brokers if a carrier damages or loses a shipment and the carrier’s insurance doesn’t cover the full amount.
Errors and Omissions (E&O) Insurance. It covers claims related to mistakes, negligence, or failure to perform professional duties.

Having the right combination of insurance helps freight brokers manage risks, protect their reputation, and meet contractual agreements with shippers and carriers.

Final Thoughts

The BMC-84 bond is more than just a licensing requirement. It’s a safeguard that protects everyone involved in the freight process and shows that you’re serious about running a professional brokerage. Understanding how it works and how to get one is necessary for setting up your business the right way.

If you’re ready to take the next step, the 90-Day Freight Broker Course covers everything from meeting insurance requirements and complying with FMCSA regulations to working with motor carriers and shippers.

Join the course to get started.

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