Myth
The broker bond protects me as a broker.
Truth
It protects the CARRIERS you broker loads to. If you fail to pay them, they file claims against your bond. Bond premium is your cost; the protection runs to motor carriers.
BMC-84 Broker Bond (BMC-84)
Federal $75,000 financial-responsibility bond for property brokers and freight forwarders. Required to maintain MC broker authority.
The exposure this line addresses.
Federal property-broker financial-responsibility bond mandated by 49 CFR §387.307. The bond guarantees payment to motor carriers and shippers if the broker fails to pay carriers for hauled loads. The $75,000 bond was raised from $10,000 in 2013 (MAP-21 Act). Broker bonds can be filed as a true surety bond (BMC-84) or as a trust fund (BMC-85); BMC-84 is more common because it requires no funded collateral, only an annual premium.
Triggers — when this line is required.
- Holding a property-broker MC (MC- number, broker authority)
- Holding a freight-forwarder authority
- Annual renewal of the bond — non-renewal triggers FMCSA broker-authority suspension
What this line does NOT cover
- Loads brokered without authority on file — that's an authority violation, not a bond claim
- Carrier disputes over service quality — bond is for unpaid amounts only
Limits we recommend by segment.
These are public-facing baselines for typical risk profiles. The intake re-derives line-specific limits based on your actual operation, contract obligations, and loss profile.
Owner-operator
N/A — not a broker
Small fleet (2-10)
$75K — if also holding broker authority
Mid-fleet (11-50)
$75K — if also holding broker authority
Large account (51+)
$75K — if also holding broker authority
Day-one carriers writing BMC-84.
From the panel that ranks top-3 per line for your risk profile. Each carrier clears the A.M. Best A- floor; final selection is made in the piece-out matrix at quote time.
Tivly MGA
MGA · Overflow
What rookie operators get wrong.
Myth
BMC-85 trust funds are cheaper than BMC-84 bonds.
Truth
BMC-85 requires $75K of cash collateral parked at a trustee bank — zero annual premium but $75K immobilized. BMC-84 surety bond costs roughly 1-3% annually with no collateral. For most brokers, BMC-84 is materially cheaper on a cash basis.
Myth
Broker bonds are claim-free.
Truth
Bond claims are common during freight downturns. Carriers actively monitor broker-bond claims and file against bonds with deteriorating payment histories. Bond claim history affects future renewals and premium.
Frequently asked
Who needs a BMC-84?
Every FMCSA property broker (MC- broker authority) and every freight forwarder. The bond is a condition of maintaining the operating authority.
What does a BMC-84 cost?
Premium varies by credit and bond claim history — typically 1-3% of the $75K bond amount annually ($750-$2,250). Strong credit + clean claim history sits at the low end.
Can a motor carrier also be a broker?
Yes, with both MC authorities (carrier MC + broker MC). The BMC-84 covers only the broker side. Most large fleets operate dual authority for surge capacity.
What happens if a BMC-84 claim is filed?
FMCSA notifies the broker; the broker has time to respond / pay. If the bond is paid out, the broker must indemnify the surety. Repeated claims may make future bonds difficult.
Can I switch from BMC-85 to BMC-84?
Yes — typically via a 30-day filing-transition with FMCSA. We coordinate the surety underwriting and the transition filing.
Ready for a BMC-84 quote?
One intake. Per-line submissions to your top 3 carriers. A coordinated binder.