Every property broker must keep $75,000 in financial security on file with FMCSA. It exists so that carriers and shippers have something to claim against if a broker doesn’t pay. It is not insurance for you: if a surety pays a claim on your bond, expect to have to pay the surety back.
This is a practical overview, not legal or financial advice. Confirm the current rules with FMCSA and your surety.
BMC-84 and BMC-85
- BMC-84, surety bond: a surety company guarantees the $75,000 and you pay it a premium, normally each year.
- BMC-85, trust fund: the $75,000 is placed with a trustee, so your money is tied up but you aren’t paying a premium to a surety.
Most new brokers choose the bond because it needs less cash up front. A trust can suit a broker who has the capital and would rather not pay a yearly premium. Either way, your surety or trustee files the form with FMCSA.
What affects a bond’s cost
The premium is set by the surety. It usually looks at your personal and business credit and your experience in freight. Quotes differ, so ask more than one provider, and ask what collateral they want if your credit is thin.
What changed in January 2026
Under the current version of 49 CFR 387.307, in effect since January 16, 2026:
- A surety or trustee must tell FMCSA within two business days of paying a claim or finding that a broker is in financial failure.
- FMCSA then gives notice, and the broker has seven business days to show the notice was wrong, the security is back to $75,000, or the claims were satisfied without using it.
- If that doesn’t happen, the broker’s authority can be suspended.
- When a financial failure leads to cancellation, claims can be made for 60 calendar days after FMCSA’s public notice.
How to protect your bond
- Pay carriers on the terms you agreed, and record when you paid.
- Answer any claim quickly, before it reaches your surety.
- Watch your cash gap. Most unpaid carriers start as a cash problem.
- Keep your contact details current with your surety and FMCSA, so a notice doesn’t go unseen.
Filing the bond is one step in the process. See how to get your freight broker authority.
Common questions
Is a freight broker bond the same as insurance?
No. A bond protects the people you owe. If the surety pays a claim, you are generally expected to repay it.
Can I cancel my bond?
Ordinary cancellation requires 30 days’ written notice to FMCSA, and your authority depends on having security in place, so replace it first.
Do I need both a BMC-84 and a BMC-85?
No. You need one or the other, totalling $75,000.