BMC-84 Freight Broker Bonds in Houston, TX
A BMC-84 freight broker bond is a federally required surety bond for anyone operating as a freight broker or freight forwarder in the United States. The Federal Motor Carrier Safety Administration requires it before a broker’s operating authority can be activated. It applies to any business that arranges transportation of goods by motor carrier without physically transporting the goods itself.
Our experienced team can help you obtain the BMC-84 freight broker bond that you need. Contact us today for more information.
What is a BMC-84 Freight Broker Bond?
A BMC-84 bond, also known as a freight broker bond or ICC bond, guarantees that a broker will pay motor carriers and shippers for services rendered and will otherwise follow FMCSA regulations. There are three parties to the bond, the principal, obligee and surety. The principal is the freight broker or forwarder, the obligee is the FMCSA, and the surety is the bond company that issues and backs it.
Federal law requires freight brokers and forwarders to maintain a surety bond of at least $75,000 as a condition of their operating authority. This amount is an aggregate limit rather than a per claim limit, meaning the total payout across all valid claims is capped at $75,000. If a broker fails to pay a carrier or shipper as agreed, the affected party can file a claim against the bond, and the broker must reimburse the surety for any amount paid out. If the bond lapses or is canceled, the FMCSA will revoke the broker’s operating authority.
BMC-84 Freight Broker Bond Examples
Brokers and forwarders that typically need a BMC-84 bond include:
- Property freight brokers arranging transportation by motor carrier
- Freight forwarders who consolidate shipments and assume responsibility for transportation
- Businesses applying for new broker authority through FMCSA registration
- Existing brokers renewing or maintaining active operating authority
Brokers may also choose a BMC-85 trust fund agreement instead of a bond to satisfy the FMCSA’s financial responsibility requirement. Contact your agent for details on which option fits your business.
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Our knowledgeable team can help you secure the BMC-84 freight broker bond that keeps your business compliant. Contact us today to get started.