Freight BrokerFreight Broker Bonds (BMC-84), or even more technically known as a Broker’s or Freight Forwarder’s Surety Bond under 49 U.S.C. 13906. The bond is required by the Federal Motor Carrier Safety Administration in the amount of $75,000 before any licenses are issued.

These bonds are used to protect shippers and motor carriers who follow all laws and regulations as stated by the Federal Motor Carrier Safety Administration.

Like all bonds, the Freight Broker Bond is a legal contract between three parties.

  1. The principal is the bond holder who wishes to get a freight forwarder’s license.
  2. The obligee is the governing body that requires the taxes to be paid. In this case, it’s the Federal Motor Carrier Safety Administration.
  3. The surety is the underwriter who issues the bond and agrees that the principal party will uphold their obligations.

The Freight Forwarder’s Bond is issued based on the credit of the principal. Depending on credit history, the cost of the bond will be anywhere between 1-15% of the bond’s amount. The minimum bond required is a $75,000 bond. Many add an additional $25,000 to the bond in order to stay competitive in the field and earn even more trust with the companies they work with.

If the principal fails to follow all rules and regulations set forth within the terms of the bond, the oblige can create a claim to be taken out on the bond. It is critical to attempt to reduce any claims before they are escalated to the surety.

Other names for the Freight Forwarder Broker Bond

  • Property Broker Bonds
  • Interstate Commerce Commission Bonds
  • Transportation Broker Bonds

How to Apply for a Surety Bond

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