If you are a new freight broker or freight carrier, you might have recently been told you need to file a trust fund agreement (BMC-85). But did you know you could file a surety bond instead and save money?
What is a Freight Broker Bond?
A Freight Broker Bond (BMC-84) is a type of license and permit surety bond that freight brokers and freight forwarders need to purchase before they can get licensed. This is a federal bond required by the Federal Motor Carrier Safety Administration (FMCSA).
Freight Broker Bonds are also known as:
- Interstate Commerce Commission (ICC) Bonds
- Property Broker Bonds and
- Transportation Broker Bonds
This bond exists to establish trust and credibility for freight brokers. Having this bond guarantees you will abide by all federal and state rules and regulations and prevents against fraud and unethical business actions.
These bonds are not protection for you, but rather protection for shippers and motor carriers that you are in contractual agreements with.
How Much Does a Freight Broker Bond Cost?
Previously, freight brokers could file a $10,000 bond, but with the new transportation law, Moving Ahead for Progress in the 21st Century (MAP-21), the bond amount is now $75,000.
You do not need to pay the full $75,000 to get bonded. You just need to pay a small one-time portion of this amount.
The price you’ll pay for your bond is based on three main factors:
- your personal credit
- business experience
- and financial strength of your company
Nervous about your credit? We have bad credit options.
Get a Freight Broker Bond
Getting a Freight Broker Bond can be expensive, but it doesn't have to be. At Surety Solutions, we work with you to get bonded, no matter what your situation.
Some of our customers have been bonded for as low as $12.50/1000.
Can I Get a Freight Broker Bond If I Have Bad Credit?
Yes. At Surety Solutions, we offer bad credit options for individuals who need to get bonded. We can get you approved no matter what your situation.
Do I Need To File My Freight Broker Bond?
No. Freight Broker Bonds are electronically filed with the FMCSA, so once you purchase your bond, the surety will file it and you won’t have to deal with any added paperwork. Once the FMCSA approves your bond, you will be able to view your bond coverage online within 24 hours.
Does My Freight Broker Bond Expire?
Yes. Freight Broker Bonds are valid for one year from the date of issuance. If you wish to terminate your bond, you must give the surety a 30-day cancellation notice. These bonds will need to be renewed every year for you to remain in compliance with the law.