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Freight glossary

Freight broker bond (BMC-84): the $75,000 requirement explained

Every property broker needs $75,000 in financial security on file with FMCSA. How BMC-84 bonds and BMC-85 trusts work, and what changed in January 2026.

Short answer

A freight broker bond is the $75,000 financial security FMCSA requires before it registers a property broker. It is filed as a BMC-84 surety bond or a BMC-85 trust fund under 49 CFR 387.307. If the broker fails to pay carriers or shippers what it owes, valid claims can be paid from that security.

Why the bond matters

For a new brokerage, the bond is one of the filings that stands between you and an active MC number. FMCSA’s broker registration page lists the $75,000 BMC-84 or BMC-85, a BOC-3 process agent designation and a $300 application fee.

For carriers, the bond is a backstop when a broker doesn’t pay. The rule text in 49 CFR 387.307 is short: “A broker must have a surety bond or trust fund of $75,000 in effect.” FMCSA won’t register a broker until it is.

A bond isn’t insurance for the broker. When a surety pays a claim, it generally expects the broker to pay it back under the indemnity agreement signed when the bond was issued. The $75,000 is also a total for all claims against that bond, not a per-claim amount.

BMC-84 vs BMC-85

BMC-84 surety bondBMC-85 trust fund
What it isA bond issued by a surety companyA trust holding $75,000 in assets with a qualified trustee
What the broker paysA yearly premium, priced mainly on credit and financialsThe full $75,000 in assets, plus trustee fees
Allowed assetsNot applicableCash, irrevocable letters of credit from federally insured depository institutions, Treasury bonds
Liquidity ruleNot applicableAssets must be convertible to cash within 7 calendar days
Cancellation notice30 days’ written notice to FMCSA on Form BMC-3630 days’ written notice to FMCSA on Form BMC-85

Source: 49 CFR 387.307 and FMCSA’s financial responsibility rule overview, as of September 10, 2026.

What changed on January 16, 2026

FMCSA’s broker and freight forwarder financial responsibility rule took effect on January 16, 2026. According to FMCSA’s overview and the current regulation:

  • Immediate suspension. If available security falls below $75,000, the surety or trustee must notify FMCSA within 2 business days. FMCSA then notifies the broker that its authority will be suspended within 7 business days of service unless the security is restored.
  • Financial failure. When a broker is in financial failure, the surety or trustee must start cancellation, and claims are accepted for 60 calendar days after FMCSA posts notice in the FMCSA Register.
  • Stricter trust assets. BMC-85 trusts are limited to cash, qualifying letters of credit and Treasury bonds, and FMCSA says loan and finance companies can no longer serve as BMC-85 trustees.
  • Enforcement on providers. Sureties and trustees that violate the rule face penalties and a 3-year ban from providing broker financial security.

The same rule covers freight forwarders.

A claim example

Example (illustrative): a carrier hauls a $2,065 load and the broker never pays. The carrier sends the surety a claim with the signed rate confirmation, the POD and the unpaid invoice. If other carriers file claims too, they all draw from the same $75,000.

Common mistakes

  • Treating the bond as protection for the broker. It protects the people the broker owes.
  • Missing a premium payment. A surety can cancel on 30 days’ notice to FMCSA, and a broker without security in effect can’t keep its authority.
  • Using a trustee without checking eligibility. Confirm your BMC-85 provider meets the 2026 requirements.

More in our guide to starting a freight brokerage.

Frequently asked questions

How much does a BMC-84 bond cost?

The bond amount is $75,000, but brokers pay a yearly premium, not the full amount. Sureties price the premium mainly on the owner's personal credit, business financials and experience, so quotes vary widely between applicants. Get quotes from more than one surety and read the indemnity agreement before signing.

Do motor carriers need a BMC-84 bond?

Not to haul freight. Carriers file liability insurance with FMCSA on forms like the BMC-91 or BMC-91X. A carrier that also wants to broker loads to other carriers needs separate broker authority, with its own $75,000 bond or trust. Brokering without it can lead to penalties under 49 U.S.C. 14916.

Is a BMC-85 trust better than a BMC-84 bond?

It depends on cash. A BMC-85 ties up $75,000 in qualifying assets but avoids surety underwriting, which can help owners with thin credit. A BMC-84 keeps the cash free for payroll and carrier pay, at the cost of a yearly premium. Many new brokerages choose the bond to preserve working capital.

Does a freight agent need a broker bond?

Not if the agent books freight under a licensed brokerage's name and authority, since the brokerage's bond covers its operations. An agent who starts arranging freight in their own name, for pay, needs their own broker registration and $75,000 security. See our entry on freight agents.

Sources (6)
  1. eCFR: 49 CFR 387.307, property broker surety bond or trust fund
  2. FMCSA: Broker and freight forwarder financial responsibility rule overview
  3. FMCSA: Broker and freight forwarder financial responsibility rule FAQs
  4. FMCSA: Broker registration
  5. FMCSA: Insurance filing requirements
  6. 49 U.S.C. 14916, unlawful brokerage activities (Cornell LII)

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