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Federal Government Bonds

Federal Government Bonds

Some agencies of the federal government accept or require surety bonds, including immigration, freight broker (BMC-84), and alchoholic beverages bonds.

At ALP Insurance, we recognize the value of Federal Government Bonds as a secure and reliable investment. Federal Government Bonds are backed by the government, offering low-risk returns and financial stability. Investors choose Federal Government Bonds for their predictable interest rates and long-term security. Whether you’re planning for retirement or seeking a safe investment, Federal Government Bonds provide a dependable option. ALP Insurance is here to guide you through the benefits and opportunities of Federal Government Bonds, ensuring you make informed financial decisions. Contact us today to learn more!

BMC-84 Freight Broker Bond: A Comprehensive Guide

Who Needs It: All individuals and business entities seeking to obtain a freight broker or freight forwarder registration.

Purpose: To ensure motor carriers and shippers do not suffer financial harm as a result of unethical actions committed by a freight broker.

Background

49 U.S. Code Statute 13904 requires all freight brokers to register with the Federal Motor Carrier Safety Administration. Congress enacted the registration laws and regulations to ensure that brokers engage in ethical business practices and provide timely payment to their shippers. In order to provide financial security for the enforcement of the registration law, brokers must purchase and maintain a $75,000 freight broker surety bond (BMC-84) or obtain a trust fund agreement (BMC-85) to be eligible for registration.

What is the Purpose of a Freight Broker Bond?

The FMCSA requires brokers to purchase a Freight Broker Bond as part of the application process to register as a freight broker. The bond ensures that motor carriers and shippers will receive compensation for financial harm if the broker engages in any acts of fraud or fails to make payments to their carriers/shippers in a timely manner. In short, the bond is a type of insurance that protects motor carriers and shippers if the broker acts unethically.

Who is Considered a Freight Broker?

49 CFR Statute 371.2 defines a freight broker as any individual or business entity “who, for compensation, arranges, or offers to arrange, the transportation of property by an authorized motor carrier.” Motor carriers and their employees are not considered to be freight brokers.

Do Freight Forwarders Need a Bond?

The FMCSA requires all freight forwarders to purchase a $75,000 Freight Broker Bond. A freight forwarder is a business entity that organizes the shipping of property for motor carriers, as well as stores their customer’s property when needed. Freight forwarders are also authorized to handle international shipments.