Freight Broker Surety Bond (BMC-84) — $75,000 Bond, Cost & Possible Collateral Requirements
A Freight Broker Surety Bond (Form BMC-84) provides the $75,000 financial security required by the Federal Motor Carrier Safety Administration (FMCSA) for freight brokers operating under federal authority. The cost of the bond is determined through underwriting, primarily based on the personal credit of the business owners and their transportation industry experience. Newly established freight brokerage entities must also meet collateral requirements.
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A1SuretyBonds.com assists both established freight brokers and newly formed transportation brokerage businesses with the application and underwriting process.
Freight Broker Bond Requirements at a Glance
| Requirement | Details |
|---|---|
| Bond Name | Freight Broker Surety Bond |
| Federal Filing Form | BMC-84 |
| Required Bond Amount | $75,000 |
| Regulatory Authority | Federal Motor Carrier Safety Administration (FMCSA) |
| Primary Legal Authority | 49 U.S.C. § 13906; 49 CFR § 387.307 |
| Premium | Individually determined through underwriting |
| Primary Pricing Factors | Owner/applicant credit and transportation industry experience |
| New Business Collateral | Required; percentage determined by underwriting |
| Indemnity Agreement | Typically required |
| Filing Method | Electronic filing with FMCSA by the authorized surety provider |
| Bond Duration | Continuous until properly canceled or replaced; premiums generally billed annually |
| Application | Online application followed by underwriting and an emailed quote |
What Is a Freight Broker Surety Bond?
A Freight Broker Surety Bond, commonly called a BMC-84 Bond, is a federal financial responsibility requirement for businesses arranging transportation of property through authorized motor carriers.
Under federal law, freight brokers must maintain $75,000 in qualifying financial security to obtain and retain operating authority from the FMCSA. This requirement can be satisfied through a BMC-84 Surety Bond or an eligible BMC-85 Trust Fund Agreement.
The BMC-84 bond is a three-party financial guarantee involving:
Principal: The freight brokerage business required to obtain the bond.
Obligee: The FMCSA, which administers the federal financial responsibility requirement.
Surety: The insurance or surety company guaranteeing the principal's covered obligations.
The bond provides financial protection to eligible motor carriers and shippers when a freight broker fails to satisfy covered contractual obligations.
Unlike traditional business insurance, a surety bond does not protect the freight broker against its own financial losses. A freight broker and any applicable indemnitors may be obligated to reimburse the surety company for valid claims paid under the bond.
Who Needs a $75,000 Freight Broker Bond?
Businesses required to maintain federal freight broker operating authority generally must provide qualifying financial security.
This includes:
Property freight brokers arranging interstate transportation through authorized motor carriers.
Household goods brokers subject to FMCSA broker registration requirements.
Newly established freight brokerage companies applying for federal operating authority.
Existing freight brokerages renewing or maintaining their operating authority.
Certain freight forwarders subject to the corresponding federal financial responsibility requirements.
The BMC-84 bond requirement is federal, meaning the same $75,000 minimum applies nationwide rather than varying by individual state.
Businesses must also complete applicable FMCSA registration requirements, including submitting the required process agent designation (Form BOC-3).
For official registration instructions, visit the FMCSA Broker Registration Guide.
How Much Does a Freight Broker Surety Bond Cost?
The premium for a $75,000 Freight Broker Surety Bond is primarily determined by the personal creditworthiness of the owners/applicants and their experience in the freight transportation industry.
The $75,000 bond amount is not the premium paid to purchase the bond. The premium is the amount charged by the surety company for providing the financial guarantee.
Freight broker bonds are underwritten individually because the surety company assumes financial risk when guaranteeing the brokerage's contractual obligations.
1. Personal Credit of the Business Owners or Applicants
The personal credit history of the business owners is a primary factor in determining the annual bond premium.
Surety underwriters may evaluate:
Personal credit scores and overall credit history.
Outstanding collections and delinquent accounts.
Bankruptcies, judgments and unpaid tax liens.
Outstanding financial obligations.
General financial stability and ability to meet contractual obligations.
Applicants with strong personal credit histories may qualify for more favorable premiums and underwriting terms.
Applicants with impaired credit histories may face higher premiums, increased collateral requirements, additional financial documentation or other underwriting conditions.
A poor credit history does not automatically result in a bond declination. However, approval and pricing depend on the surety company's underwriting determination.
2. Freight Brokerage and Transportation Industry Experience
The second major underwriting factor is the industry experience of the business owners or applicants.
Surety companies evaluate whether the individuals responsible for operating the freight brokerage possess the knowledge and experience necessary to manage transportation contracts, carrier payments and financial obligations.
Relevant experience may include:
Previous ownership or operation of a freight brokerage.
Employment as a freight broker or transportation intermediary.
Experience working for motor carriers, trucking companies or logistics providers.
Freight dispatching and transportation operations experience.
Transportation account management and carrier relations.
Knowledge of freight payment practices, broker-carrier agreements and transportation regulations.
Experienced applicants may present a more favorable underwriting profile because they can demonstrate familiarity with industry-specific financial and operational risks.
Individual industry experience and the operating history of the business are evaluated separately.
For example, an applicant with several years of freight brokerage experience who is forming a new company may receive consideration for that experience. However, the newly established business will still be subject to the applicable new-entity collateral requirement.
3. Additional Underwriting Considerations
Depending on the applicant's circumstances, the surety company may also evaluate business financial statements, working capital, business credit history, prior bond claims, outstanding financial obligations and the company's operating history.
The final premium, collateral percentage and approval conditions are established through the underwriting process.
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Collateral Requirements for New Freight Brokerage Companies
Newly established freight brokerage entities are required to provide collateral equal to a percentage of the $75,000 bond amount under A1SuretyBonds.com's applicable underwriting program.
This requirement is particularly important for individuals forming a new freight brokerage business, even when the owners have previous experience in the transportation industry.
The collateral percentage is determined by the surety company's underwriting evaluation and may vary based on the applicant's financial qualifications.
Why Do New Freight Brokerages Require Collateral?
Surety companies assume financial responsibility for covered claims if the freight broker fails to meet its obligations.
New businesses generally have limited operating history, making it more difficult for underwriters to evaluate their ability to manage freight payments, maintain adequate working capital and prevent bond claims.
Requiring collateral provides additional financial security to the surety company.
The underwriting decision may consider the owners' personal creditworthiness, relevant industry experience, financial resources and the proposed business structure.
How Much Collateral Will a New Freight Broker Need?
The amount of collateral is expressed as a percentage of the required $75,000 bond amount.
There is no single collateral percentage applicable to every applicant. The percentage is established by the surety based on individual underwriting criteria.
Applicants should understand three separate financial amounts:
| Financial Requirement | Explanation |
|---|---|
| $75,000 Bond Amount | The federal financial security amount required by FMCSA |
| Bond Premium | The amount paid to the surety company for issuing and maintaining the bond |
| Collateral | Additional security pledged to the surety company, calculated as a percentage of the bond amount |
Collateral is separate from the bond premium and should not be confused with the cost of the bond.
Importantly, the collateral requirement for newly formed businesses is an underwriting requirement imposed by the surety, not an additional federal collateral percentage established by FMCSA.
Is Collateral Refundable?
Collateral is generally held subject to the terms of the applicable collateral and indemnity agreements.
Its release depends on the surety company's contractual requirements, the status of the bond, outstanding claims and any remaining obligations.
Collateral should not be assumed to become immediately available upon cancellation or expiration of the premium term.
Starting a new freight brokerage? Apply online to have your credit, industry experience and collateral requirements evaluated.
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Can an Established Freight Brokerage Qualify Without Collateral?
Established freight brokerages may qualify for bond terms without pledged collateral, subject to surety approval.
An existing business with a demonstrated operating history, favorable owner credit and satisfactory claims history may present a stronger underwriting profile than a newly formed entity.
Underwriters may consider:
Length of time the company has operated.
Credit histories of the owners.
Financial statements and available working capital.
Previous surety bond claims.
Record of timely payment to motor carriers.
Experience of management and key personnel.
Collateral-free approval is not guaranteed. Even established freight brokerages may be required to provide collateral when their credit, financial condition or claims history warrants additional security.
BMC-84 Surety Bond vs. BMC-85 Trust Fund Agreement
Freight brokers can satisfy the federal $75,000 financial responsibility requirement through either a qualifying BMC-84 surety bond or a BMC-85 trust fund agreement.
| Feature | BMC-84 Surety Bond | BMC-85 Trust Fund |
|---|---|---|
| Required Security | $75,000 bond | $75,000 qualifying trust security |
| Financial Arrangement | Surety company guarantees covered obligations | Eligible financial institution maintains trust assets |
| Initial Financial Commitment | Underwritten premium, plus collateral if required | Full $75,000 in qualifying trust assets |
| Owner Credit Evaluation | Part of surety underwriting | Depends on trust arrangement and provider |
| Federal Filing | BMC-84 | BMC-85 |
| FMCSA Acceptance | Yes | Yes, subject to applicable requirements |
For a BMC-84 bond, the applicant pays an underwritten premium and provides any required collateral rather than automatically depositing the entire $75,000 into a trust.
A BMC-85 requires the full $75,000 in qualifying financial security to be maintained through an eligible trustee. Current federal regulations restrict qualifying trust assets to cash, certain irrevocable letters of credit and U.S. Treasury bonds.
The appropriate option depends on the applicant's financial position, available capital and underwriting eligibility.
Federal Freight Broker Bond Requirements and 2026 Regulatory Changes
Freight broker financial responsibility is governed primarily by:
49 CFR § 387.307 — Property Broker Surety Bond or Trust Fund
FMCSA Broker and Freight Forwarder Financial Responsibility Rule
Important Changes Effective January 16, 2026
The FMCSA implemented revised financial responsibility rules intended to strengthen protection for motor carriers and shippers.
Among the changes:
Financial Security Must Be Maintained. Brokers and affected freight forwarders must continue maintaining at least $75,000 in qualifying financial security.
Potential Suspension of Operating Authority. Under the applicable notification procedure, if available security is reduced below the required $75,000, FMCSA can suspend operating authority when the deficiency or pending claims are not adequately addressed within the prescribed response period.
Enhanced Surety and Trustee Reporting. Financial responsibility providers have additional obligations to notify FMCSA of specified claims, security reductions and financial failure or insolvency.
Additional BMC-85 Trust Requirements. Trust funds must meet stricter requirements concerning eligible trustees and readily available assets.
These requirements make it especially important for freight brokers to maintain continuous financial responsibility, respond promptly to potential claims and address renewal or cancellation issues before their authority is affected.
How to Obtain a Freight Broker Surety Bond Through A1SuretyBonds.com
A1SuretyBonds.com provides an online application process for freight broker bonds. Because these bonds require underwriting, submitting an application does not automatically constitute approval or issuance.
Step 1 — Complete the Online Bond Application
Provide information about the freight brokerage and its owners.
Applicants may begin the application process before receiving their MC number. However, the appropriate FMCSA registration information will be required before the bond can be filed.
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Step 2 — Provide Owner Credit and Industry Experience Information
Provide the information requested to evaluate the owners' personal creditworthiness and transportation industry experience.
Additional financial statements, business information or supporting documentation may be requested.
Step 3 — Underwriting and Collateral Review
The surety company reviews the application and determines whether the applicant qualifies.
For newly formed freight brokerages, the underwriting review will include the percentage of collateral required to support the bond.
Step 4 — Receive Your Bond Quote by Email
Following underwriting, A1SuretyBonds.com will email an approval and premium quote when an offer is available.
The quote may identify the premium, collateral requirement and any additional conditions necessary for issuance.
Step 5 — Complete Approval Conditions
Applicants electing to proceed must satisfy the applicable requirements, which may include:
Acceptance of the approved bond premium.
Execution of an indemnity agreement.
Completion of collateral documentation.
Delivery of required collateral.
Payment of the bond premium.
The surety company must complete its approval and issuance requirements before the bond is issued.
Step 6 — Electronic Filing With FMCSA
After approval, completion of all required documentation and payment, the authorized surety provider electronically files Form BMC-84 with FMCSA.
A1SuretyBonds.com advises the applicant regarding the filing and provides a copy of the issued bond.
The bond filing must be accepted by FMCSA as part of the applicant's federal operating authority requirements.
Filing, Renewal and Cancellation of the Freight Broker Bond
How Is Form BMC-84 Filed?
Form BMC-84 is filed electronically with the FMCSA by the authorized surety provider.
The freight broker does not satisfy its federal filing requirement simply by downloading an application or obtaining an unsigned bond document.
Does a Freight Broker Bond Need to Be Renewed?
Freight broker surety bonds generally remain in effect continuously until properly canceled or replaced.
Premiums are typically billed annually, and continued coverage requires the broker to comply with applicable renewal and underwriting conditions.
What Happens if the Bond Is Canceled?
Federal regulations generally require 30 days' written notice for cancellation of a BMC-84 bond under the applicable procedures.
A freight broker that does not maintain replacement financial security risks losing its FMCSA operating authority.
Applicants should arrange for replacement coverage before an existing bond terminates to avoid a lapse in required financial responsibility.
Frequently Asked Questions About Freight Broker Surety Bonds
How much is the required freight broker bond?
The federally required freight broker surety bond amount is $75,000. This represents the financial security guaranteed by the surety company, not the annual premium paid by the applicant.
What determines the cost of a freight broker bond?
The primary factors are the personal credit history of the owners/applicants and their freight transportation industry experience. Business financial condition, operating history and prior claims may also influence the final quote.
Do new freight broker companies need collateral?
Yes. Under A1SuretyBonds.com's applicable underwriting program, newly established freight brokerage entities must provide collateral equal to a percentage of the $75,000 bond amount. The exact percentage is determined through underwriting.
Can I get a freight broker bond with bad credit?
Applicants with impaired credit may still be considered for a freight broker bond. However, higher premiums, additional underwriting requirements and increased collateral may be necessary. Approval is not guaranteed.
Does prior trucking or logistics experience help lower my bond premium?
Relevant experience can improve an applicant's underwriting profile. Experience in freight brokerage, logistics operations, dispatching, transportation management or carrier relations may be considered by the surety. The weight assigned to each type of experience varies by underwriter.
Can I apply for a freight broker bond without an MC number?
Yes. A1SuretyBonds.com allows applicants to begin the bond application process before receiving an MC number. The appropriate federal registration information is required before the surety can complete the FMCSA filing.
Will I need to sign an indemnity agreement?
An indemnity agreement is typically required for underwritten freight broker surety bonds. It establishes the applicant's and any additional indemnitors' contractual obligations to reimburse the surety for covered losses and expenses.
Does every freight broker need to deposit $75,000?
No. The $75,000 is the required financial security amount. A freight broker obtaining a BMC-84 pays an underwritten premium and posts any required collateral. A BMC-85 instead requires the full $75,000 in eligible trust security.
How long does it take to get approved?
Approval depends on the completed application, applicant qualifications, documentation requirements and surety underwriting review. Newly formed businesses and applications requiring collateral may require additional processing. A1SuretyBonds.com emails an approval or quote after the applicable review.
Who files the freight broker bond with FMCSA?
The authorized surety provider electronically files the issued BMC-84 bond with FMCSA. The applicant must supply accurate registration information and complete all requirements for issuance.
Apply Online for Your $75,000 Freight Broker Surety Bond Quote
Whether you're establishing a new freight brokerage or maintaining an existing operation, A1SuretyBonds.com can help you begin the BMC-84 underwriting process online.
Your freight broker bond premium is based primarily on your personal credit and transportation industry experience. New freight brokerage entities must also meet surety collateral requirements.
Complete the online application to receive an individually underwritten quote and information about any collateral or indemnity obligations.
Apply Online — Get Your Freight Broker Bond Quote
For assistance, call A1SuretyBonds.com at (800) 737-4880 or email info@a1suretybonds.com.
All applications are subject to surety underwriting, approval and applicable collateral, indemnity and payment requirements. Submission of an application does not constitute approval or issuance of a surety bond.