Phil Pavarini is a licensed insurance producer and is compensated when a bond is placed through this site. This page is general information, not legal, tax or fiduciary advice, and it is not a substitute for reading your plan document or contract or for advice from your own counsel. Figures shown are current as of the date on this page.
Federal law will not let a property broker operate until it has $75,000 of financial security on file with the Federal Motor Carrier Safety Administration. The requirement is in 49 U.S.C. 13906(b), the operating rules are in 49 CFR 387.307, and FMCSA will not register a broker until the bond or trust fund is in effect.
Most brokers meet it with a surety bond filed on form BMC-84. The alternative is a $75,000 trust fund filed on form BMC-85. Freight forwarders that arrange transportation carry the same $75,000 requirement under section 13906(c).
Who the bond protects#
The bond is there for the motor carriers and shippers the broker deals with. The statute says it must be available to pay claims against the broker arising from its failure to pay freight charges under its contracts, agreements or arrangements for transportation.
In plain terms: if a broker collects from the shipper and does not pay the carrier that hauled the load, the carrier has somewhere to go. The broker is not the protected party. If the surety pays a claim, it will look to the broker and its owners to repay it under the indemnity they signed.
One amount, however big the brokerage#
The figure is $75,000 regardless of the number of branch offices or sales agents. A one-person brokerage and a firm with forty agents carry the same amount.
That has a consequence carriers should understand. The $75,000 is shared by everyone with a valid claim against that broker. If a broker fails owing a lot of carriers, the claims can exceed the bond, and the statute provides for paying them pro rata.
Ready to get your broker authority bonded? Apply for this bond, or read the full bond details.
How it gets filed#
The surety, or the financial institution for a trust fund, files the BMC-84 or BMC-85 with FMCSA electronically. The broker does not file the form itself. FMCSA will not register the broker until security for the full $75,000 is in effect.
Either the broker or the surety can cancel the security, but only on 30 days written notice to FMCSA. If the security lapses, the broker loses the right to operate. Treat the renewal date the way you would treat your operating authority, because in practice it is the same thing.
What changed on January 16, 2026#
FMCSA rewrote the broker and freight forwarder financial responsibility rules, effective January 16, 2026. The main changes in 49 CFR 387.307:
- Drawdowns. If a payment reduces the bond or trust fund below $75,000, the surety or financial institution must notify FMCSA within 2 business days. FMCSA then notifies the broker, and the broker’s registration is suspended unless the security is restored to $75,000 within 7 business days.
- Insolvency. When a broker fails, the surety must publicly advertise for claims for 60 calendar days and pay uncontested claims within 30 days after that period ends, pro rata if the claims exceed the security.
- Trust funds. A BMC-85 trust fund may hold only cash, irrevocable letters of credit issued by a federally insured depository institution, or Treasury bonds, and it must be possible to liquidate them within 7 calendar days.
The practical effect for a broker: a claim paid against the bond is no longer something you can deal with at renewal. It can put your authority on a short clock.
How it is underwritten#
The BMC-84 is a true surety bond. The surety is guaranteeing the broker’s payment obligations and expects to be repaid if it pays a claim, so it looks at the owners’ personal credit, the business’s finances and its experience in the industry. The business and its owners sign an indemnity agreement.
That is why premiums for this bond vary so widely from one broker to the next, and why this page does not quote one. The application is where you get a real number.
In this section
Common questions
How much is the freight broker bond?
The bond amount is $75,000, set by 49 U.S.C. 13906 and 49 CFR 387.307. That figure is the same for every broker regardless of size, number of branch offices or number of agents. The premium you pay for the bond is a different number, set by the surety from your credit, finances and experience.
What is the difference between a BMC-84 and a BMC-85?
A BMC-84 is a surety bond. A BMC-85 is a trust fund agreement backed by $75,000 in qualifying assets held by a financial institution. Both satisfy the requirement. Since January 16, 2026, a trust fund may hold only cash, irrevocable letters of credit from a federally insured depository institution, or Treasury bonds that can be liquidated within 7 calendar days.
Do freight forwarders need the bond too?
Freight forwarders subject to 49 U.S.C. 13906(c) must provide $75,000 of financial security, the same amount as brokers. Freight forwarders also have their own insurance requirements, which are separate from this security.
Who can make a claim on a broker bond?
Motor carriers and shippers with claims against the broker arising from its failure to pay freight charges under its contracts, agreements or arrangements for transportation. The surety investigates claims, and if the broker becomes insolvent it advertises for claims for 60 days and pays valid claims, pro rata if they exceed $75,000.
What happens if a claim is paid and the bond drops below $75,000?
Under the rule in effect from January 16, 2026, the surety must notify FMCSA within 2 business days. FMCSA notifies the broker, and the broker’s registration is suspended unless the security is brought back to $75,000 within 7 business days.
Need the BMC-84 filed with FMCSA?
The application covers the broker bond and its filing with FMCSA. A freight broker bond is underwritten on the owners’ credit and experience, because the surety expects to be repaid if it pays a claim.
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