Freight brokers and freight forwarders in the U.S. are required by the Federal Motor Carrier Safety Administration (FMCSA) to provide a $75,000 BMC-84 freight broker bond. Obtaining the bond is part of the steps to getting a freight broker license. The freight broker bond is also known as BMC-84 bond, ICC broker bond, or FMCSA broker bond.
The bond rate is based upon your credit and experience. The cost of a BMC 84 bond can be as low as $938.00, but can cost as much as $8,000.
The FMCSA secretary of the Treasury requires this bond to protect shippers and motor carriers from brokers and freight forwarders who fall short of their contractual obligations, such as conducting fraud or failing to pay trucking companies on time. The BMC-84 Freight Broker Bond bond covers any claims that have been made against the freight broker, for up to the $75,000 bond amount. The bond is electronically filed with the FMCSA. A BMC-84 bond is a three part agreement. The Principal, The Surety Company, and the Obligee. The Principal is the Freight Broker or individual applying for the Surety Bond. The Obligee is the FMCSA requiring the BMC-84 bond and the Surety Company is the company who underwrites and provides the Surety Bond coverage. If a BMC-84 bond claim occurs, the principal must reimburse the Surety Company for any loss the Surety Company may suffer due to the claim.