Secure Your Freight Broker Bond with TMD
Providing reliable BMC-84 freight broker surety bonds nationwide starting at $849.
Your Trusted Partner for Secure, Hassle-Free Surety Bonds
TMD Surety Bonds is your local expert freight broker bond agency. Since our establishment in 2011, we have helped thousands of customers with their bond needs. Our clients know they can count on our attentive customer service, surety bond mastery, and price transparency.
What Is a Freight Broker Bond (BMC-84)?
Freight Broker Bond is a surety bond required by the Federal Motor Carrier Safety Administration (FMCSA) for freight brokers. It guarantees that brokers will have the assets to cover legitimate bills from carriers and shippers.
Why Is a Freight Broker Bond Required?
A Freight Broker Bond is required by the Federal Motor Carrier Safety Administration (FMCSA) to ensure freight brokers comply with regulations and fulfill their agreements with motor carriers and shippers. If a broker fails, the harmed party can claim against the bond to recover losses.
Who Needs a Freight Broker Surety Bond?
A Freight Broker Surety Bond is a critical requirement for certain roles in the transportation industry. The following entities need this bond:
- Freight Brokers: Individuals or companies that connect shippers and carriers.
- Freight Forwarders: Entities that organize shipments for individuals or corporations to get goods from the producer or manufacturer to a market, customer, or final point of distribution.
- Trucking Companies or Carriers: Companies that haul freight, they are required to have this bond if they also operate as brokers.
How to Get a Freight Broker Bond
Effortlessly secure your freight broker surety bond in three simple steps! Experience the reliability and convenience of our hassle-free surety bond process.
2. Request Quote
How Much Does a Freight Broker Bond Cost?
The cost of obtaining this bond with TMD Surety Bonds varies and is calculated as a small percentage of the full bond amount based on the applicant’s personal credit report and experience.
Here’s a clear breakdown of the costs:
Bond Premium: This is the main cost you’ll incur. The premium is typically between 2-12% of the full bond amount. This means the cost of a freight broker bond ranges from $849 to $9,000.
Underwriting Factors: The bond premium is determined during the underwriting process and is influenced by several factors such as your credit history/score, length of business experience, and financial strength. For instance, freight brokers with solid credit histories, experience, and financial strength pay a lower bond percentage (about 2-3% or $1,500 to $2,250 annually) than those with poor credit histories, lack of experience, and financial weakness (about 4-15% or $3,000 to $11,250 annually).
It’s important to note that no collateral is required to obtain this bond.
In terms of affordability and value for money, the Freight Broker Bond is a cost-effective solution for freight brokers. It not only fulfills the legal requirement set by the FMCSA but also protects shippers/motor carriers, ensuring that you as the broker abide by the FMCSA rules and regulations.
Remember, providing industry experience, strong personal credit, and business/personal financials will help lower your bond rate. So, it’s not just an expense, but an investment into your business’s credibility and longevity.
Reach out to TMD Surety Bonds for a quote today.
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The bonding process can be confusing and cumbersome. Our surety bond experts are standing by and ready to answer any questions. Let’s get you bonded today!
Freight Broker Bond FAQ
Freight brokers must obtain a surety bond of at least $75,000 from a surety company or bond agency. They must abide by the rules and regulations laid down by the FMCSA and any state-specific laws.
Freight brokers need a surety bond, also known as a freight broker bond, BMC-84 bond, or ICC broker bond. This bond ensures compliance with federal and state regulations by trucking and freight companies.
BMC-84 refers to a surety bond, while BMC-85 refers to a trust fund. Both are options for meeting the FMCSA’s $75,000 funding requirement. The choice depends on whether a freight broker can afford to tie up that much cash and/or credit
A surety bond for freight brokers is valid for one year from the issue date. The broker is responsible for renewing their bond each year.
Once paid for, the bond is forwarded to the FMCSA on the same day. However, it might take the FMCSA up to 2-3 business days to update their electronic records.
Freight broker bonds must be renewed annually. Payment of the bond premium needs to get through at the latest 30 days before your bond expires. TMD will notify you with ample time via email and a phone call with your renewal approval.
Yes, freight brokers with poor credit score can still get bonded. However, the bond premium will be a bit higher.
Need a Freight Broker Bond? Have Questions?
TMD Surety Bonds is here for your immediate freight broker bond needs. We will be more than happy to explain and answer all of your questions.