How much does a freight broker bond cost?
The cost depends on your credit score and financial history. Applicants with good credit typically pay 1-3% of the bond amount annually ($750-$2,250), while those with poor credit may pay 5-10% ($3,750-$7,500) or more.
What's the difference between property broker and household goods broker bonds?
Both require the same $75,000 BMC-84 bond amount. The difference is in what you're brokering: property brokers arrange general freight shipments, while household goods brokers arrange residential moving services.
What happens if a claim is filed against my broker bond?
If a motor carrier or shipper files a valid claim because you failed to pay them, the surety company will investigate. If the claim is valid, the surety pays the claimant up to $75,000, and you must reimburse the surety company for the full amount paid plus costs.
How long does it take to get broker authority after filing my bond?
After submitting your complete application including the bond, it takes approximately 4-6 weeks for FMCSA to process your broker authority application.
What is a BMC-84 broker bond?
A BMC-84 bond is a $75,000 surety bond required by the FMCSA for freight and household goods brokers. It guarantees you will pay motor carriers for the services you arrange and comply with federal transportation regulations.
Is the bond required continuously or just at application?
The bond must remain in force continuously for as long as you maintain active broker authority. If your bond is cancelled and not replaced, FMCSA will revoke your operating authority.
Do I need this bond if I'm already a registered motor carrier?
Yes, if you want to add broker authority to your existing carrier authority, you must file the $75,000 broker bond separately. Carrier bonds and broker bonds are different requirements.
Can I use a trust fund instead of a surety bond?
Yes, FMCSA allows you to file a Form BMC-85 Trust Fund Agreement instead of a BMC-84 surety bond. This requires depositing the full $75,000 with a financial institution, whereas a bond only requires paying a premium.
