What is a BMC84 Freight Broker Surety Bond?
A BMC84 Freight Broker Surety Bond is required of all companies seeking to obtain a property broker license from the USDOT Federal Motor Carrier Safety Administration (FMCSA). The Freight Broker Surety Bond seeks to ensure that all bonded brokers or forwarders of freight pay their carriers and also provides a form of recourse should the payments not be made. These surety bonds are submitted electronically to the FMCSA which is why you may have difficulty finding a copy of the bond form online.
How much does a BMC 84 Freight Broker Bond cost?
The Freight Broker Surety Bond Cost begins a $938 annually. However, pricing can increase due to bad credit. The best way to determine your BMC 84 Bond cost is to complete our online application.
Who needs a BMC 84 Freight Broker Bond?
Any person or company who brokers freight or the transportation of property for a fee is required to register with the FMCSA as a broker of freight. One of the requirements of freight brokers is to post a $75,000 BMC84 Surety Bond. The bond must be in place prior to the FMCSA approving your freight broker’s license.
What does a BMC 84 Freight Broker Surety Bond do?
A freight broker bond is an agreement between your company (principle), the surety company (surety), and the FMCSA (obligee) to ensure that money is available to pay outstanding claims on behalf of your company. In many cases, when a disagreement occurs between your company and a claimant, the claimant will first contact you to resolve the claim. If your company and the claimant are unable to resolve the issue, they claimant may decide to file a claim against your BMC84 Surety Bond. The claim may be baseless or it could be valid which will be resolved during the claims process. The claims process typically involves collection information from both your company and the claimant to determine the claims validity. Your company will be expected to satisfy the claim if it’s determined to be valid. If your company cannot satisfy a valid surety bond claim, the surety bond will generally pay the claimant the amount due and will attempt to collect the total loss amount from you and your company.
What is the current market for a BMC84 Freight Broker Surety Bond?
The market for BMC 84 Freight Broker Surety Bonds has rapidly changed over the past few years. Many surety companies have experienced significant claims activity due to the most recent economic downturn. Additionally, the passage of the Moving Ahead For Progress Act of 2012 has increased the minimum Freight Broker Bond amount from $10,000 to $75,000 effective as of July 2013. Even with these recent developments, DBL Surety has access to surety companies who are actively writing the Freight Broker Bond regardless of credit.
How do I apply for an Freight Broker / Forwarder (BMC 84) Surety Bond?
- Complete our online Freight Broker / Forwarder (BMC 84) Surety Bond application, or
- Download and complete our printable Freight Broker / Forwarder (BMC 84) Surety Bond application, and
- Receive your surety bond quote in minutes!