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BMC-84 Explained

What is a BMC-84 bond?

A BMC-84 is the $75,000 FMCSA surety bond that every licensed freight broker and freight forwarder must keep on file. It's the financial-responsibility requirement that your broker authority depends on — without it on file, the FMCSA won't activate (or will revoke) your MC number.

What the bond does

The BMC-84 guarantees up to $75,000 to the motor carriers and shippers you work with. If a broker doesn't pay its carriers or breaches its agreements, those parties can claim against the bond. In short, it's a financial promise that makes you a trustworthy party in the freight chain — which is exactly why the FMCSA requires it before you can broker loads.

BMC-84 vs. BMC-85

Both satisfy the same $75,000 rule, two different ways:

  • BMC-84 (surety bond): you pay a small annual premium and a surety company backs the $75,000. This is what most brokers choose — no large cash outlay.
  • BMC-85 (trust fund): you set aside the full $75,000 in cash with a trustee. Ties up real money, so it's far less common.

Why brokers — not carriers — need it

A motor carrier that runs trucks needs insurance (auto liability, cargo). A freight broker arranges loads but doesn't operate trucks, so auto liability doesn't apply. Instead, brokers carry the BMC-84 bond. If your FMCSA record shows broker authority and zero trucks, the bond is the coverage you need.

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Frequently asked questions

What does BMC-84 stand for?
BMC-84 is the FMCSA form number for a property broker's surety bond. Filing a BMC-84 satisfies the $75,000 financial-responsibility requirement that every licensed freight broker and freight forwarder must meet.
What's the difference between a BMC-84 and a BMC-85?
Both satisfy the same $75,000 requirement. A BMC-84 is a surety bond — you pay an annual premium and the surety guarantees the $75,000. A BMC-85 is a trust fund — you (or a trustee) set aside the full $75,000 in cash. Most brokers choose the BMC-84 because it's far cheaper up front.
Who does the BMC-84 bond protect?
It protects the motor carriers and shippers a broker does business with. If a broker fails to pay carriers or breaches its contracts, those parties can file a claim against the bond — up to $75,000.
Is a BMC-84 the same as trucking insurance?
No. Trucking insurance (auto liability, cargo, physical damage) covers a motor carrier that operates trucks. A BMC-84 is a surety bond for a freight broker, who arranges loads but doesn't run trucks. Brokers need the bond, not auto liability.

Related

  • Freight broker bond (BMC-84) overview
  • How much does it cost?
  • How to get your freight broker bond
Full Coverage — Truck Insurance & Freight Broker Bonds · myfullcoverage.com · (317) 427-5599
Bonds placed through Old Republic Surety. We are a licensed insurance brokerage; bond approval and pricing are subject to underwriting.