Freight Broker & Forwarder Bonds

BMC-84 Surety Bond & BMC-85 Trust Fund

FMCSA requires freight brokers and freight forwarders to maintain a $75,000 financial security instrument as a condition of operating authority. Here is what you need to know before you apply.

Request a Bond Quote Freight Broker Bond Already Issued? View Next Steps

Issuing a bond does not itself confirm active operating authority. FMCSA processes the filing and updates your record separately. After your bond is issued, use the post-bond checklist to confirm your registration status.

Who needs this bond?

Freight Brokers

A freight broker arranges transportation of cargo for compensation without taking possession of the freight. FMCSA requires brokers to hold a BMC-84 surety bond (or a BMC-85 trust fund) as a condition of broker operating authority (MC number with broker authority). The bond protects shippers and carriers from financial harm if the broker fails to pay amounts owed.

Freight Forwarders

A freight forwarder assembles and consolidates shipments and assumes responsibility for transportation. FMCSA also requires freight forwarders to maintain a $75,000 financial security instrument. However, the specific filing requirements and authority type for forwarders differ from brokers. If you are a freight forwarder, contact the agency for guidance specific to your authority type.

FMCSA Insurance Filing Requirements

BMC-84 vs. BMC-85 — what is the difference?

BMC-84 Surety Bond

A surety bond issued by a licensed surety company. The surety guarantees payment up to the bond amount if the broker fails to pay a valid claim. You pay a premium (a fraction of the $75,000 face amount) rather than depositing the full amount. The surety files the bond directly with FMCSA.

BMC-85 Trust Fund

A trust fund arrangement where the broker deposits $75,000 with a qualified financial institution. FMCSA permits the trust to hold cash, irrevocable letters of credit issued by a federally insured depository institution, or U.S. Treasury bonds. The assets are held in trust and are not available for business use. The trustee must meet FMCSA eligibility requirements. This option is less common because it requires setting aside the full $75,000 in qualifying assets.

The BMC-84 and BMC-85 are different arrangements for satisfying the same financial-security requirement — they are not the same product and are not interchangeable. Changing from one arrangement to the other requires the appropriate FMCSA filing. Most brokers use the BMC-84 surety bond because it requires only a premium payment rather than setting aside the full $75,000.

Bond amount vs. premium — what is the difference?

The required bond amount is $75,000. This is the maximum the surety will pay on a valid claim — it is not the amount you pay. The premium is what you pay to obtain the bond. Premium rates vary based on your personal credit, business history, and other underwriting factors. We do not quote specific premium rates here because they depend on individual underwriting.

We do not guarantee approval or specific premium rates. Bond availability and pricing depend on the surety's underwriting review of your application.

What information should I have ready?

Legal business name and address
Owner or principal name (Social Security number and other sensitive underwriting information will be collected through a secure application provided by the agency — do not include it in a contact message)
FMCSA MC number (if already assigned) or application status
Authority type (broker, forwarder, or both)
Desired effective date or deadline
Any prior bond history or claims

What can affect pricing and underwriting?

Personal credit score of the owner or principals
Business credit history and time in operation
Prior surety bond claims or cancellations
Financial statements for larger or higher-risk accounts
Industry experience and references

Underwriting requirements vary by surety company. We work with multiple surety markets to find options for a range of credit profiles.

Who submits the federal filing?

Once your bond is issued, the surety company files the BMC-84 directly with FMCSA on your behalf. You do not submit the filing yourself. FMCSA processes the filing and updates your operating authority record. Processing time varies — check your FMCSA record to confirm the filing has been received and your authority is active before arranging freight.

What happens after the bond is issued?

After your BMC-84 is issued, the surety files with FMCSA. You should then confirm your Motus access, verify the bond appears in your FMCSA record, complete your BOC-3 process-agent filing if not already done, and confirm your broker authority is active before arranging any freight.

Freight Broker Bond Already Issued? View Next Steps

How do I request help with a copy, correction, renewal, or filing question?

Contact the agency directly. We can assist with bond copies, corrections to the bond record, renewal questions, and filing inquiries. Use the contact form below and select "Freight broker bond inquiry" as the subject.

What additional brokerage insurance should I discuss with the agency?

Contingent cargo insurance — may cover cargo claims when the underlying carrier's insurance does not respond, subject to policy terms, conditions, and exclusions
General liability insurance — covers bodily injury and property damage claims arising from brokerage operations
Errors and omissions (E&O) insurance — covers claims arising from mistakes or omissions in brokerage services
Cyber liability insurance — covers data breach and cyber incident costs

The BMC-84 bond protects shippers and carriers from non-payment. It does not replace cargo insurance, general liability, or other commercial coverages. Discuss your full coverage needs with the agency.

Frequently Asked Questions

What happens if my bond is cancelled?

If your BMC-84 is cancelled, FMCSA will revoke your broker operating authority after a notice period (typically 30 days). You must maintain continuous bond coverage to keep your authority active. The surety notifies FMCSA of cancellation.

What triggers a bond claim?

A claim is filed when a shipper or carrier alleges the broker failed to pay amounts owed — for example, unpaid carrier invoices or shipper refunds. The surety investigates the claim. If valid, the surety pays up to the bond amount and then seeks reimbursement from the broker.

Does the bond renew automatically?

Bond renewal terms vary by surety and policy. Some bonds renew automatically; others require a renewal application. Contact the agency before your bond expiration date to confirm renewal status and avoid a lapse in coverage.

I am a freight forwarder, not a broker. Do I need the same bond?

Freight forwarders are also required to maintain a $75,000 financial security instrument with FMCSA, but the specific authority type and filing requirements differ from freight brokers. Contact the agency for guidance specific to your authority type and refer to FMCSA's insurance filing requirements for forwarders.

Ready to get bonded?

Contact Insurance Professionals to discuss your freight broker bond needs.

Request a Bond Quote Call 800-506-6932