BMC-84 Freight Broker Bond (FMCSA)

BMC-84 Freight Broker Bond (FMCSA) Information

Freight Broker Bonds (BMC-84) are necessary for operation as a transportation broker in the United States, and are regulated by the Federal Motor Carrier Safety Administration (FMCSA). The bond demonstrates financial responsibility of a broker, guaranteeing payment to motor carriers and shippers if a broker fails to comply with its contracts and agreements.

With the signing of the MAP-21 bill, property brokers and freight forwarders have been required to post a $75,000 bond since Oct 1, 2013, which is a significant increase from the previous $10,000 bond. Brokers that do not comply with the new bond requirement may have their broker authority revoked by the FMCSA.

Listed below are the 3 absolutes in surety.

  • Most be a US Citizen
  • Cannot be in current bankruptcy
  • Cannot be behind in child support

Three party agreement

Surety Bond Definition: The definition of a surety bond is as follows: A surety bond is a binding agreement between three parties. This agreement sets forth a financial guarantee by one party ( “surety” ) to another party ( “obligee” ) that a third party ( “principal” ) will fulfill required obligations to the obligee, and that state, federal, and local laws and applicable regulations will be adhered to. Let’s examine each of the three parties.

Learn more about surety bonds

Bad Credit – Fast Approvals – Lowest Rates Available.

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  • Credit below 650 and/or have blemishes on credit report.
  • 
Average cost is 5-15% of the bond amount.
  • Available for all commercial bonds.

Why does credit matter? Applying for a surety bond is similar to applying for a loan. You are asking a surety company to back you financially. Reviewing credit is the best method for the surety to understand their risk. All sureties review credit as a view only and should have no effect on your credit score. While it is true that bad credit makes it harder to obtain a competitive quote, we are committed to making sure all of our customers have access to the best possible rates. While we can’t guarantee that we can provide a bond for the most extreme bad credit situations, we strive to make sure no stone is unturned! In other words, if you are insurable, we will get it written. Contact us today and let us put together an online quote for you that will exceed your expectations.

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