Understanding the Freight Broker Bond
A freight broker bond, also known as a BMC-84 bond, is a federally mandated surety bond required by the Federal Motor Carrier Safety Administration (FMCSA) for anyone seeking freight broker authority. This bond serves as a financial guarantee that brokers will honor their contractual obligations and pay carriers and shippers as agreed. In short, it protects the transportation ecosystem from non-payment and unethical practices, ensuring trust and compliance across the industry.
The current FMCSA requirement is $75,000 in financial security, either through a BMC-84 surety bond or a BMC-85 trust fund. While the bond amount is fixed, the actual cost to the broker,called the premium, depends on factors like credit score, business history, and financial stability. Premiums typically range from $938 to $9,000 annually, with rates as low as 1% – 2% for brokers with excellent credit.
Why is A Freight Broker Bond Required?
The freight broker bond isn’t just a regulatory checkbox – it’s a cornerstone of accountability. If a broker fails to pay carriers or violates FMCSA rules, the bond ensures carriers and shippers can recover losses through a claim process. This financial safeguard promotes ethical business practices and strengthens confidence in the freight brokerage industry. Without it, brokers risk losing their operating authority and facing steep fines.
Freight Broker Bond Compliance Updates for 2025
FMCSA is tightening enforcement. Starting January 2026, brokers who allow their bond coverage to fall below $75,000 – even for a single day – will face immediate suspension of operating authority. Additionally, trust fund providers must now use liquid assets only, closing loopholes that previously allowed risky financial instruments. These changes aim to eliminate underfunded trusts and reduce fraud, making compliance more critical than ever.
How Much Does a Freight Broker Bond Cost?
While the bond amount is $75,000, you don’t pay that upfront. Instead, you pay a premium based on underwriting factors:
- Excellent Credit (750+): $750 – $1,500 annually
- Good Credit (700–749): $1,500 – $2,250 annually
- Poor Credit (<650): $3,750 – $12,500 annually
Improving your credit score, maintaining strong financials, and partnering with a reputable surety provider can significantly reduce costs.
How to Get a Freight Broker Bond
The process is straightforward:
- Apply through a trusted surety provider authorized by the U.S. Treasury.
- Submit financial documentation for underwriting.
- Receive your bond and file with FMCSA electronically.
- Approval can take as little as 24 – 48 hours with complete documentation
Ready to Secure Your Freight Broker Bond?
Partner with NFP for a seamless bonding experience and peace of mind. At NFP, we simplify the bonding process with:
- Fast approvals and competitive rates for all credit tiers.
- Expert guidance on compliance and FMCSA requirements.
- Nationwide coverage backed by strong carrier relationships.
Our team understands the complexities of freight brokerage and works to ensure your bond meets regulatory standards while supporting your business goals.
