Full explanation
A freight broker bond is the $75,000 surety bond (form BMC-84) or trust fund agreement (form BMC-85) that FMCSA requires all licensed property brokers to maintain as a condition of their operating authority. This financial security protects motor carriers who perform transportation services arranged by the broker and shippers who pay brokers for transportation that is not provided. The bond amount was increased from $10,000 to $75,000 in 2013 following widespread broker fraud complaints. If a broker fails to pay carriers for completed services, affected carriers can file claims against the bond. However, the $75,000 is a total fund — not per-claim — so multiple claimants must share the pool, often receiving only partial recovery. Bond cancellation automatically triggers broker authority suspension after a 30-day notice period. The annual cost of a broker bond ranges from $750 to $7,500+ depending on credit score and financial history, purchased from surety companies authorized by the US Treasury.
Source: FMCSA: BMC-84 Bond
Frequently asked questions
Why was the broker bond increased to $75,000?
The increase from $10,000 to $75,000 in 2013 (MAP-21 Act) responded to widespread complaints that the previous amount was insufficient to cover unpaid carrier claims. Many argued even $75,000 remains too low for brokers handling millions in freight.
Can I use a trust fund instead of a bond?
Yes. FMCSA accepts either a surety bond (BMC-84) or a trust fund agreement (BMC-85) for the $75,000 requirement. Trust funds require depositing the full amount with a financial institution, making them more expensive upfront but avoiding annual premiums.
How do I check if a broker's bond is active?
Use Truck Graph's MC Lookup tool to verify broker authority and bond status. Active bond information is synced from FMCSA records. If bond status shows 'cancelled' or 'inactive', the broker should not be arranging freight.
Related terms
A financial guarantee required by FMCSA that protects shippers and carriers agai...
FMCSA AuthorityOfficial permission from the Federal Motor Carrier Safety Administration to oper...
Operating AuthorityLegal permission to operate as a for-hire carrier, broker, or freight forwarder ...
Double BrokeringThe illegal practice of a carrier accepting a load under its own authority then ...