What is a Freight Broker Bond?
The Freight Broker Bonds is a license surety bond required by the Federal Motor Carrier Safety Administration (FMCSA).
This bond guarantees that if a Freight Broker fails to pay a motor carrier (trucking company), the bond allows the motor carrier to claim the payment directly from the surety bond.
This bond requirement is continuous, meaning that as long as the operating authority is in place, the surety bond requirement remains as well.
BMC-84 Bonds are also known as:
- Freight Broker Bonds
- Transportation Broker Bonds
- Property Broker Bonds
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Frequently Asked Questions
How much does a Freight Broker Bond cost?
The cost of your freight broker bond is a percentage of the $75,000 bond amount as determined by a surety company but generally speaking they range from 3-4% of the bond value.
In certain cases, FCA Surety is able to negotiate lower rates. Freight brokers wanting to renew their surety bond may qualify for a lower rate after a year or two of conducting business without having any claims filed against the bond.
How fast is the application process?
FCA Surety will deliver your Freight Broker Bonds within 24 hours.
What is required to apply for a Freight Broker Bond?
In order to apply for a BMC-84 bond, we require a completed application form and the most recent financial year-end statements of the company. In certain cases, bond companies may also inquire about the personal financial situation of the principal(s) of the company as well. Please contact us for more information.