What is a freight broker bond?

Every licensed freight broker in the United States must maintain a $75,000 surety bond — or an equivalent trust fund — as a condition of their FMCSA operating authority. This requirement, codified in the MAP-21 Act of 2012, is one of the three foundational compliance requirements for a licensed broker (alongside the MC operating authority itself and the BOC-3 process agent filing). This guide explains what the bond is, how it works, what it costs, and when it matters.

What is a surety bond?

A surety bond is a three-party financial guarantee instrument:

• The principal — the freight broker who purchases the bond and whose obligations the bond guarantees.
• The obligee — the party protected by the bond. For freight broker bonds, the obligees are FMCSA and, by extension, the carriers and shippers who may be harmed by broker non-payment or misconduct.
• The surety — the insurance or surety company that issues the bond, backing the principal's obligations up to the bond face value ($75,000).

A surety bond is not insurance for the broker. It is a guarantee to third parties that the broker will fulfill their obligations. If the broker defaults and a valid claim is paid by the surety, the surety recovers the payment from the broker. The broker remains financially liable — the surety just ensures the claimant is made whole promptly.

The BMC-84: the freight broker surety bond form

FMCSA Form BMC-84 is the standardized surety bond filing form for freight brokers. When a broker obtains a surety bond, the surety company files the BMC-84 with FMCSA on the broker's behalf. The filing is visible in the FMCSA Licensing and Insurance (L&I) database — carriers and shippers can verify that a broker has a valid bond on file before doing business with them.

The BMC-84 bond must be maintained continuously. If the surety cancels the bond (typically for non-payment of premium), the surety must provide FMCSA with 30 days written notice before cancellation. FMCSA will revoke the broker's operating authority if a replacement bond is not filed within the 30-day window.

How much does a freight broker bond cost?

The bond face value is $75,000 — this is the maximum amount that can be paid out on a claim. The broker does not deposit $75,000; they pay an annual premium to the surety company to issue the bond.

Premium rates for freight broker BMC-84 bonds are based primarily on the principal's personal credit score, business financial history, and years in operation:

• Strong credit (700+ FICO): Premium near the floor — approximately 1.5% of face value, or roughly $1,125 per year.
• Average credit (650–700 FICO): Premium in the 2–3% range, approximately $1,500–$2,250 per year.
• Challenged credit (below 650 FICO): Premium may reach 4–5% or higher, approximately $3,000–$3,750+ per year. Some sureties decline coverage at this credit level.
• New brokers with no business credit history: Premium is typically based on personal credit and may come with additional underwriting requirements.

Most reputable surety providers offer 12-month or 24-month premium payment terms. Multi-year terms sometimes come with modest discounts. Unlike insurance premiums, surety bond premiums are not refunded if the bond is cancelled early — they are earned upon issuance.

The BMC-85: the trust fund alternative

Instead of purchasing a BMC-84 surety bond, a broker may satisfy the financial responsibility requirement by establishing a trust fund under FMCSA Form BMC-85. The trust fund must hold $75,000 on deposit at all times in a federally chartered financial institution.

The BMC-85 trust fund has one clear advantage: no annual premium. Once $75,000 is deposited, the broker pays only minimal trust administration fees rather than $1,125–$3,750+ per year. Over a 10-year horizon, a broker with strong credit still saves money on the BMC-85 versus paying premium annually.

The practical barrier is the upfront capital requirement. For new brokers and small operations, locking $75,000 in a trust fund is not feasible. The BMC-85 is primarily used by established brokerages with access to sufficient working capital or by large brokerages with sophisticated treasury functions.

What triggers a bond claim?

A BMC-84 bond claim is filed by a carrier or shipper who has suffered a financial loss due to the broker's failure to pay or fraudulent conduct, and who cannot recover the loss from the broker directly (typically because the broker is insolvent or has absconded).

Common triggers for freight broker bond claims:

• Broker insolvency: The broker has collected shipper payment but not remitted carrier payment before running out of funds or going out of business. Carriers who are owed money can file claims against the bond.
• Check fraud: The broker issued checks to carriers that subsequently bounced, and the broker is unreachable or has no funds to cover.
• Double-payment disputes: The broker paid the wrong party (e.g., a double-broker instead of the actual carrier) and cannot cover the legitimate carrier's invoice.
• Misrepresentation: The broker misrepresented the terms of a load or shipper relationship, causing financial harm to a carrier who moved freight under false pretenses.

The bond does not cover cargo loss or damage (that is the carrier's liability under Carmack). It does not cover shipper claims against the carrier. It specifically covers financial harm to carriers and shippers caused by broker non-payment or fraud.

History: the MAP-21 bond increase from $10,000 to $75,000

The freight broker surety bond requirement dates to the Motor Carrier Act of 1980, which set the bond amount at $10,000. That level remained unchanged for over three decades, even as freight volumes, broker revenues, and fraud losses grew substantially.

By the late 2000s, the $10,000 bond had become essentially meaningless as a financial backstop. A single unpaid carrier invoice on a transcontinental reefer load could exceed the entire bond amount. The Transportation Intermediaries Association (TIA) and carrier advocacy groups lobbied Congress for an increase.

The Moving Ahead for Progress in the 21st Century Act (MAP-21), signed by President Obama in July 2012, raised the bond requirement to $75,000, effective October 1, 2013. The legislation also required brokers to maintain records and allowed carriers to have access to broker transaction records under certain conditions.

The $75,000 level was a compromise. Carrier groups had pushed for $100,000 or higher; broker associations argued that a significant increase would push small and startup brokers out of the market by making annual premiums prohibitively expensive for low-credit operators. FMCSA estimated at the time that the increase would affect several thousand existing broker registrations.

The MAP-21 increase also coincided with a wave of broker closures and authority revocations, as brokers who could not qualify for the higher bond let their authority lapse rather than pay the increased premium.

The bond debate continues

As of 2026, the $75,000 bond level has not been raised since MAP-21. Given inflation and the growth in average load values since 2013, some industry stakeholders have renewed calls for another increase. The counterargument remains that higher bond requirements compress the broker market toward large established players and restrict entry for new brokers.

FMCSA has not initiated formal rulemaking to change the bond amount as of the publication date of this guide.

The bond in context: full broker licensing requirements

The $75,000 bond (or BMC-85 trust fund) is one of three requirements for licensed freight broker operating authority:

• MC operating authority from FMCSA (application fee currently $300).
• $75,000 surety bond (BMC-84) or trust fund (BMC-85) on file at all times.
• BOC-3 process agent designations in all states.

For a complete walkthrough of the licensing process, see our guide how to become a freight broker. For a broader overview of the regulatory framework, what is FMCSA covers the agency's mandate and databases in full.

Once licensed and operating, the day-to-day challenge for most freight brokers is managing the carrier email inbox — triaging 30–50 carrier replies per posted load against rate targets and carrier trust signals. That is the specific problem Keelway's carrier email automation solves. See how it works for brokerages, review pricing, or book a demo.