Freight Broker Insurance
Broker Bonds (BMC-84)
The surety bond federal rules require for freight broker authority.
What It Is
To hold broker authority, FMCSA requires freight brokers to maintain $75,000 in financial security, through either a BMC-84 surety bond or a BMC-85 trust fund. The bond protects motor carriers and shippers if a broker fails to pay what it owes. It isn’t insurance for the broker: if the surety pays a claim, the broker must pay the surety back.
What It Typically Covers
- Valid claims by carriers and shippers when a broker fails to pay, up to the bond amount
Common Gaps to Watch For
- It doesn’t protect the broker. Claims paid by the surety are owed back by the broker.
- Your authority depends on it. If the bond is canceled, your authority can be revoked.
- $75,000 is a minimum, not a measure of your exposure.
Who Usually Needs It
Every freight broker and freight forwarder that needs FMCSA broker authority.
What Underwriters Consider
- The owners’ personal and business credit
- Business financial statements, depending on the surety
- Years in business and industry experience
- Claims history
Questions to Ask
- What will my bond cost based on my credit and experience?
- How long does approval take?
- What happens if a claim is filed against my bond?
- Should I consider a trust fund instead?
All coverage is subject to policy terms, conditions, and exclusions.
Last reviewed: November 1, 2026
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Licensed in Illinois.