Freight Broker Bond (BMC-84): Cost & Requirements
The $75,000 surety bond is one of the few non-negotiable requirements to become a licensed broker. Here is exactly what it is, what it costs, and how to get approved.
Every freight broker in the United States must carry a $75,000 BMC-84 surety bond (or an equivalent BMC-85 trust) to keep their FMCSA broker authority active. The bond exists to protect the shippers and carriers you do business with - if you fail to pay a carrier or breach your agreements, they can file a claim against your bond.
Freight Broker Bond at a Glance
How Much the Bond Actually Costs
This is the most misunderstood part: you do not pay $75,000. You pay an annual premium that is a small percentage of the bond's face value, set mostly by your personal credit score.
Example Premiums (per year):
- • Excellent credit (720+): ~1-2% → $750 - $1,500
- • Average credit (650-719): ~3-5% → $2,250 - $3,750
- • Lower credit (below 650): ~6-10% → $4,500 - $7,500
The bond renews annually. If you build a clean payment history and improve your credit, your premium usually drops at renewal.
BMC-84 vs. BMC-85: Which Should You Choose?
- BMC-84 (surety bond) - You pay a yearly premium and a surety company backs the full $75,000. Best for most new brokers because it requires little capital up front.
- BMC-85 (trust fund) - You set aside the full $75,000 in cash or assets. No annual premium, but the capital is locked up. Only makes sense if you have the cash and want to avoid premiums.
How to Get and File Your Bond
- 1.Apply with a licensed surety provider (many specialize in freight broker bonds). Expect a soft or hard credit check.
- 2.Receive your premium quote and pay the first year. Approval is often same-day for good credit.
- 3.The surety files your BMC-84 electronically with the FMCSA - you do not mail anything yourself.
- 4.Once the bond and your BOC-3 and OP-1 are on file, the FMCSA activates your authority.
The bond is one piece of the larger licensing process. See the full sequence in our freight broker authority guide and the complete startup cost breakdown.
Frequently Asked Questions
How much does a freight broker bond cost?
The bond face value is fixed at $75,000, but you do not pay that amount. You pay an annual premium - typically 1-10% of the face value, or $750 to $7,500 per year - based primarily on your personal credit. Brokers with strong credit often pay under $1,000/year.
What is the difference between a BMC-84 and a BMC-85?
A BMC-84 is a surety bond issued by a bonding company - you pay a yearly premium and the surety backs the full $75,000. A BMC-85 is a trust fund where you (or a financial institution) set aside the full $75,000 in cash. Most new brokers choose the BMC-84 because it requires far less capital up front.
Do all freight brokers need a $75,000 bond?
Yes. Under the MAP-21 law, every licensed property broker and freight forwarder must maintain a $75,000 BMC-84 bond or BMC-85 trust to keep their FMCSA authority active. Dispatchers, who work for carriers and do not hold broker authority, are not required to carry this bond.
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