What is the purpose of Freight Broker Surety Bonds?
Freight brokers are required to maintain a $75,000 surety bond with the FMCSA (Federal Motor Carrier Safety Administration) under Title 49, U.S.C. 13904. As of October 1, 2013, the freight broker bonds amount increased from $10,000 to $75,000 to comply with the MAP-21 bill.
Also referred to as a BMC-84 bond or ICC (Interstate Commerce Commission) bond, these bonds guarantee the broker will operate in a correct manner and pay the motor carriers and shippers in a reasonable amount of time. This applies to both property and household goods brokers as well. The bond is a requirement in order to obtain a brokerage authority.
How do I obtain my Motor Carrier Number from the FMCSA?
Application and processing time with the FMCSA typically takes 4-6 weeks and is filed through the Unified Registration System (URS).
The Motor Carrier (MC) number is required for Pacific Surety to file the surety bond online. Additional information on the application process can be found on the FMCSA website.
What are the terms of Freight Broker Bonds?
The Principal or the Surety may cancel the BMC-84 freight broker bond at any time by written notice to the FMCSA, and it will become effective 30 days after receipt.
How much does a Freight Broker Bond cost?
Unlike others in the industry, we do not require business or personal financials for approval. Pacific Surety has pricing for nearly every credit situation, starting as low as $938 annually (1.25%) and up to $9,375 (12.5%). Additionally, we offer financing on the higher premium situations, which can be a good option for new businesses.
Whether you are an existing freight broker looking to save money or new to the industry, WE CAN HELP! Typical turn around time for approval is 1 hour once our simple application is complete. In most cases, the bond can be filed the same day, saving you time and money.
If you have any questions about the application process for freight broker bonds, feel free to contact our surety bond experts.