Everything You Need to Know About the BMC-84 Freight Broker Bond
Freight brokers must secure a BMC-84 bond before legally operating in the United States. This requirement comes from the Federal Motor Carrier Safety Administration (FMCSA).
What Is the BMC-84 Bond?
The BMC-84 is a $75,000 surety bond required for freight brokers and freight forwarders.
It guarantees that brokers will meet their financial responsibilities.
Specifically, it protects motor carriers and shippers from non-payment or unethical behavior.
If a broker fails to pay, the injured party may file a claim against the bond.
Why Is the BMC-84 Bond Necessary?
Without this bond, brokers cannot receive operating authority from the FMCSA.
Furthermore, it ensures fair business practices in the freight industry.
Shippers and carriers rely on this bond as a financial safety net.
Therefore, it promotes accountability and trust throughout the logistics supply chain.
How Much Does It Cost?
Bond premiums vary depending on several factors.
Most importantly, your credit score and financial history play a major role.
For example, brokers with strong credit may pay as little as $900 per year.
However, those with poor credit might pay over $7,000 annually.
According to JW Surety Bonds, rates typically range from 1.5% to 12% of the bond amount.
How Do You Get a BMC-84 Bond?
The process is straightforward.
First, complete a short application with a licensed surety provider.
Next, the provider will check your credit and financials.
Then, you’ll receive a premium quote.
After you pay the premium, the bond gets filed directly with the FMCSA.
What Happens If a Claim Occurs?
If a broker fails to pay a carrier or shipper, they can file a claim.
The surety company investigates the situation quickly.
If the claim is valid, the surety pays up to $75,000.
However, the broker must repay the surety afterward.
Final Thoughts
Clearly, the BMC-84 bond is crucial for freight brokers.
It ensures compliance with federal laws and builds trust in your business.
Without it, you risk legal penalties and financial instability.