What is a Freight Broker Bond?
The Freight Broker Bond or BMC-84 surety bond is a license surety bond required by the Federal Motor Carrier Safety Administration (FMCSA) in the amount of $75,000. The FMCSA Freight Broker surety bond requirement is continuous, meaning that as long as the operating authority is in place, the surety bond requirement remains as well. This surety bond is required by all freight brokers operating in the United States.
Freight broker bonds provide a form of recourse for a motor carrier hired by a freight broker. If a motor carrier has not received payment for a job for which payment is due, a claim can be made against the surety bond. The Surety, the company providing the freight broker bond, could then be required to make payment up to the bond penalty amount if the issue is not resolved by the Broker. The surety would then attempt to collect the paid claim amount from the broker. Ultimately, the broker is responsible for any amount paid out on a claim.
FCA specializes in providing BMC 84 surety bonds to Canadian freight brokers with operations in the USA.