If you're a freight broker or involved in the transportation industry, you may have heard of the BMC-84 freight broker bond. This surety bond is essential for compliance and financial protection. In this article, we'll explore everything you need to know about BMC-84 bonds, their cost, forms, and requirements. Discover how to get the cheapest broker bonds, even if you have bad credit.
What is a BMC-84 Freight Broker Bond?
A BMC-84 bond, also known as a BMC-84 surety bond, is required by the Federal Motor Carrier Safety Administration (FMCSA) for freight brokers to operate legally. It acts as a guarantee to protect shippers and carriers against financial losses caused by the broker's non-payment or other contractual violations.
Cost of BMC-84 Freight Broker Bond:
The cost of a BMC-84 bond varies based on factors such as the broker's creditworthiness, experience and bond amount required by the FMCSA. To get the cheapest BMC-84 bond, we will explore multiple surety bond companies and comparing their rates.
BMC-84 vs. BMC-85:
You might have come across the term BMC-85 bond as well. The main difference between BMC-84 and BMC-85 is the type of coverage they provide. While BMC-84 bonds are specific to freight brokers, BMC-85 bonds cover both freight brokers and freight forwarders.
How to Get a Broker Surety Bond with Bad Credit:
Even if you have bad credit, you can still obtain a broker surety bond. Some surety bond companies specialize in providing bonds for individuals with credit challenges.
Getting your broker authority with the Federal Motor Carrier Safety Administration (FMCSA) involves several steps. Here's a step-by-step guide on how to obtain your broker authority:
Obtain an Operating Authority (MC Number):
To begin the process, you need to apply for an Operating Authority (also known as an MC Number) through the FMCSA. You can do this by completing the application online on the FMCSA's official website (https://www.fmcsa.dot.gov/registration/get-mc-number-authority-operate). Make sure to have all the required information ready, such as your business name, address, contact information, and details about your operation.
Register with the Unified Registration System (URS):
As part of your broker authority application, you'll need to register with the Unified Registration System (URS). This system combines several FMCSA registration processes into one, making it easier to manage your authority.
Obtain a USDOT Number (if applicable):
Depending on your business activities, you might also need a USDOT Number in addition to your MC Number. If you're transporting cargo or operating as an interstate carrier, you will likely require a USDOT Number. You can apply for it through the same FMCSA online registration process.
Meet the BMC-84 or BMC-85 Bond Requirement:
To operate legally as a freight broker, you must have either a BMC-84 or a BMC-85 surety bond. The BMC-84 bond is the most common choice for brokers. It provides financial protection for shippers and carriers in case of any violations by the broker. You can obtain this bond from a licensed surety bond company.
Designate Process Agents:
As part of the application process, you must designate a process agent for each state where you conduct business. Process agents are responsible for receiving legal documents on your behalf. You can hire a process agent service or find an individual or company willing to take on this role.
Pay the Required Fees:
There are fees associated with applying for broker authority and obtaining a surety bond. Make sure to pay all required fees as part of the application process. The FMCSA accepts electronic payment methods for your convenience.
Submit Your Application:
Once you have completed all the necessary steps and gathered all the required information, submit your broker authority application through the FMCSA's online system. After reviewing your application, the FMCSA will process your request.
Await Approval and Receive Your Broker Authority:
The FMCSA will review your application and verify that you meet all the requirements. If everything is in order, you will receive your broker authority, granting you permission to operate as a freight broker.
Please note that the process and requirements may change over time, so it's essential to refer to the FMCSA's official website for the most up-to-date information and instructions.
The BMC-84 freight broker bond is a crucial requirement for freight brokers and those in the transportation industry. By understanding its cost, forms, and requirements, you can ensure compliance and protect your business financially. If you need the cheapest BMC-84 bond or have bad credit, explore specialized providers to find the best solution for your needs. Stay informed about FMCSA bond regulations to maintain a successful and legally compliant brokerage operation.Apply »