Get Your BMC-84 Bond with Confidence
What is a BMC-84 Bond?
A BMC-84 is a $75,000 surety bond required by the Federal Motor Carrier Safety Administration (FMCSA) for all licensed freight brokers and freight forwarders operating in the United States. Also known as BMC-84 surety bond, freight broker bond, property broker bond, ICC bond, or transportation broker bond, the BMC-84 serves as a financial guarantee that ensures brokers fulfill their contractual obligations, and pay carriers and shippers as agreed. If a broker fails to pay a carrier after delivery or violates the terms of their agreement, the affected party can file a claim against the BMC-84 bond to recover their losses. This bond is essential to promoting trust and financial security in the freight brokerage industry. Without a valid BMC-84 surety bond, freight brokers cannot legally operate or maintain their brokerage authority with the FMCSA.
If you are a freight broker or a freight forwarder working in the U.S., you are required to have a BMC-84 surety bond. This bond is a mandatory part of your FMCSA licensing process and must remain active to keep your broker authority valid. The FMCSA requires all licensed brokers and forwarders to maintain this $75,000 bond at all times.
You need a BMC-84 surety bond after applying for your freight broker or freight forwarder authority with the FMCSA, but before your authority becomes active.
It’s one of the required steps to activate your broker license. The FMCSA will not grant you operating authority until your Form BMC-84 is filed and approved.
You Need the BMC-84 Bond:
- After applying for broker authority (MC Number)
- Before your authority becomes active
- Within 90 days of your application, or the FMCSA will cancel it
Without this bond, you’re not legally allowed to operate as a freight broker or forwarder.
The BMC-84 bond is valid for one year only from its issue date. You must renew it annually by paying the bond premium to keep your broker authority active and stay compliant with FMCSA regulations.
Getting a BMC-84 surety bond is a simple process. Here’s how it works:
- Apply with a surety bond provider
Contact a licensed surety company or agency. Share your business details, and be ready for a credit check.
- Review your quote and pay the premium
Based on your credit and financial history, the surety company will provide you with a quote. You’ll pay an annual premium, typically between 1% and 10% of the $75,000 bond amount.
- The Surety files your Bond
After payment, the surety company files Form BMC-84 electronically with the FMCSA. You don’t need to file anything yourself.
- Wait for FMCSA approval
The FMCSA reviews your bond. Once approved, it usually appears on their website within 24 hours.
- Stay paper-free
The entire process is completed online. No physical forms or additional paperwork are required from you.
Although the FMCSA requires the bond amount to be $75,000, you do not pay $75,000 upfront. Instead, you pay an annual premium, typically ranging from 1% to 10% of the bond amount. The exact cost depends on your credit score, financial history, and business experience.
For instance, a broker with strong credit might pay as little as $1,000 per year, while brokers with poor credit may pay $7,500. Some surety companies offer credit programs to help applicants with low credit scores get bonded, usually with high premiums.
Operating as a freight broker without a valid BMC-84 bond can result in serious consequences:
- Your broker license can be suspended or revoked by the FMCSA, making it illegal to operate
- You are not legally allowed to conduct brokerage operations in interstate commerce without this bond.
- You may face significant fines or other financial penalties.
- Shippers or carriers may take legal action against you for unpaid claims or breaches of contract.
The $75,000 BMC-84 bond is required to ensure brokers operate responsibly and are able to cover losses in the event of a dispute.
Answers About The BMC-84 Surety Bond
What Are the Requirements for Obtaining a BMC-84 Bond?
To get a BMC-84 bond, you must apply through a licensed surety bond provider. You’ll need to provide basic business information and, if available, your USDOT or MC Number. The surety company will evaluate your credit and financial history before issuing a quote.
The bond amount is $75,000, but you only pay an annual premium—typically between 1% and 10% of the total. In most cases, no collateral is required.
How Do You Pay for a Surety Bond?
The BMC-84 bond premium is paid once after you accept a quote from the surety company. The bond stays active for one year and must be paid annually on renewel.
How Does a BMC-84 Bond Work?
The BMC-84 is a three-party agreement involving:
- Principal: The freight broker or forwarder who is required to obtain the bond.
- Surety Company: The provider that issues the bond and guarantees payment if the broker fails to meet obligations.
- FMCSA: The federal agency that requires the bond to ensure brokers comply with regulations.
If the freight broker fails to meet their obligations—such as not paying a carrier—the affected party can file a claim. The surety company investigates and, if valid, pays the claimant up to $75,000. The broker is then responsible for repaying the surety company.
What is the Difference Between a BMC-84 and a BMC-85?
- The BMC-84 is a surety bond. Instead of paying the full $75,000, brokers pay a smaller annual premium to a surety company, which guarantees payment if a valid claim is filed. This option is more affordable and commonly used by most brokers.
- The BMC-85 is a trust fund agreement. Brokers must deposit the full $75,000 upfront into a trust account. No surety company is involved, and the broker is fully responsible for covering any claims directly.
Can I Get a BMC-84 Bond with Bad Credit?
Some surety companies offer programs for brokers with poor credit. While the premium might be higher, you typically don’t need collateral to get bonded.
Do I Need a Motor Carrier (MC) Number Before Applying For a Bond?
No, you don’t need an MC Number to start the BMC-84 bond application. However, most surety companies require an active MC Number before they can file the bond with the FMCSA.
To avoid delays, it’s recommended that you begin both the MC Number application and the bond process at the same time—or get your MC Number first.
BMC-84 Official PDF
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