Freight brokers must secure a $75,000 surety bond to obtain operating authority from the Federal Motor Carrier Safety Administration. This requirement is fulfilled through Form BMC-84 or BMC-85.
What is the Broker Bond?
- BMC-84: Surety bond issued by a bonding company
- BMC-85: Trust fund agreement
This bond ensures brokers meet financial obligations to carriers and shippers.
Why is it Required?
The bond protects:
- Trucking companies from non-payment
- Shippers from fraud
- The integrity of the freight brokerage industry
Cost of the Bond
You don’t pay $75,000 upfront. Instead:
- Pay 1%–10% annually ($750–$7,500)
- Based on credit score and financial history
Filing Process
- Purchase bond from a surety provider
- Provider files with FMCSA
- Authority becomes active once approved
Compliance Requirements
- Maintain bond continuously
- Renew annually
- Avoid claims (can impact business credibility)
Risks of Non-Compliance
- Revocation of broker authority
- Legal disputes
- Loss of trust in the market
