What is a
BMC-84?

signing bmc 84

A Freight Broker Bond, officially known as a BMC-84 or freight broker surety bond, is a specific type of surety bond mandated by the Federal Motor Carrier Safety Administration (FMCSA). This requirement is essential for obtaining brokerage authority in the transportation industry.

 

The Purpose of a Freight Broker Bond

A BMC-84 bond serves as a safeguard to ensure your compliance with the rules and regulations established by the Federal Motor Carrier Safety Administration (FMCSA). Should you fail to adhere to these regulations, a claim can be filed against your bond. Subsequently, you are responsible for reimbursing the claim amount.

For instance, if a freight broker neglects to make timely payments to motor carriers, it can lead to a claim against their bond. This can result in substantial financial repercussions for licensed freight brokers and jeopardize the stability of their brokerage. Therefore, understanding the significance of the BMC-84 bond and how it functions in practical terms is crucial.

 

Understanding the Cost of a Freight Broker Bond

The cost of a freight broker bond varies and typically falls within the range of $925 to $9,000. The pricing structure is determined as a percentage of the total $75,000 bond amount, usually ranging from one to twelve percent. The specific percentage you pay as your bond rate is contingent on your financial standing, including your personal credit score.

 

Obtaining a Freight Broker Bond (BMC-84)

If you are launching a new freight brokerage, one of the initial steps is to register with the FMCSA to secure your freight broker authority. It is imperative to have a well-structured business plan in place as part of your preparation.

Once you have successfully registered, the next crucial step is procuring a freight broker bond (BMC-84) from a reputable bond company. Furthermore, it is essential to ensure that your bond is correctly filed with the FMCSA to meet all regulatory requirements and commence your brokerage operations seamlessly.