Surety Bond (BMC-84)

A surety bond, specifically the BMC-84 form, is a financial guarantee required by the FMCSA for all licensed freight brokers and freight forwarders. The bond amount is $75,000 and serves as a financial safety net for motor carriers and shippers who may suffer losses due to a broker's failure to pay for services.

The surety bond is not insurance for the broker. It protects the parties the broker does business with. If a freight broker fails to pay a carrier for hauling a load, the carrier can file a claim against the broker's surety bond to recover the money owed. The broker is then responsible for reimbursing the surety company for any claims paid.

As an alternative to the surety bond, brokers can establish a BMC-85 trust fund of $75,000 held by a financial institution. The trust serves the same purpose but requires tying up the full amount in cash. Most brokers prefer the surety bond because it only requires paying an annual premium, typically 1% to 10% of the bond amount depending on your credit and financial history. We can help freight brokers obtain their BMC-84 surety bond quickly and at competitive rates.