AMERICA'S LEADING PROVIDER FOR SURETY BONDS
Enter the business name to obtain a quote:
Federal Government Bonds
Some agencies of the federal government accept or require surety bonds, including immigration, freight broker (BMC-84), and alchoholic beverages bonds.
BMC-84 Freight Broker Bond: A Comprehensive Guide
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.
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.
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.
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.