Skip to content
A freight broker surety bond (form BMC-84) is a $75,000 financial guarantee that every licensed freight broker in the U.S. must have. It protects carriers and shippers: if a broker doesn't pay what it owes, for example a carrier's freight charges, they can file a claim against the bond. Instead of a bond, a broker can set up a $75,000 trust fund (form BMC-85). You need one or the other to get and keep your FMCSA broker authority.
Let's keep this simple. Think of the bond as a security deposit. The government wants $75,000 set aside in case a broker doesn't pay its counterparties. You can either put up the $75,000 yourself (a trust fund) or pay a surety company a yearly fee to guarantee it on your behalf (a surety bond).
How Does a Freight Broker Surety Bond Work?
A surety bond involves three parties:
- You (the broker): you buy the bond and are responsible for paying your obligations.
- The surety company: it guarantees up to $75,000 on your behalf.
- The FMCSA (on behalf of carriers and shippers): it requires the bond so that anyone you fail to pay can file a claim.
Important: a surety bond is not insurance for you. If the surety pays a claim, you're required to pay the surety back. The bond protects the people you do business with, not your business.
BMC-84 Surety Bond vs. BMC-85 Trust Fund
| Comparison | BMC-84 Surety Bond | BMC-85 Trust Fund |
|---|---|---|
| What it is | A surety company guarantees $75,000 for you | You set aside the full $75,000 yourself |
| Upfront cost | A yearly premium (a percentage of $75,000) | The full $75,000 |
| Best for | Most new brokers | Brokers with $75,000 available who prefer not to pay premiums |
| Allowed assets (2026) | Not applicable | Only cash, irrevocable letters of credit, or Treasury bonds |
Which should you choose? As we discuss in our freight broker training course, do a simple financial comparison. First, find out what a bond would cost you. Then figure out what your $75,000 could earn if you invested it elsewhere. If it would earn less than the bond premium, a trust fund may make sense. If it can earn more than the premium, buying a bond and investing your $75,000 elsewhere usually makes more sense. (Example for illustration only: if your $75,000 could earn $3,000 a year elsewhere and a bond would cost you $1,200 a year, the bond is the cheaper option.)
How Much Does a Freight Broker Bond Cost?
You don't pay $75,000 for a surety bond. You pay a yearly premium, usually a percentage of the $75,000, based mainly on your personal credit and financial history. Typical 2026 estimates from bond providers (NFP, Bryant Surety Bonds):
| Credit profile | Typical yearly premium |
|---|---|
| Strong credit | About 1%–2%, or roughly $750–$1,500 a year |
| Average credit / most new brokers | Roughly $1,500–$3,000+ a year |
| Poor credit | Can run $4,000–$10,000+ a year |
These are estimates; your actual price depends on your quote. Some providers offer payment plans or programs for applicants with weaker credit. See the full picture in what it costs to start a freight brokerage.
What Changed in 2026?
The FMCSA's broker and freight forwarder financial responsibility rule became fully enforceable on January 16, 2026 (FMCSA compliance guide). Key points:
- Your $75,000 has to stay whole. If claims draw your bond or trust below $75,000 and it isn't restored within seven business days of FMCSA's notice, your broker authority can be suspended.
- Bond companies must report quickly. Surety and trust providers must notify FMCSA within two business days of a drawdown or a financial failure.
- Trust funds are limited to cash, irrevocable letters of credit, or Treasury bonds.
- Insolvency means suspension. If your surety cancels your bond because you're insolvent, your authority is suspended within 30 days unless you file a replacement.
Bottom line: pay your carriers on time, keep your bond in good standing, and deal with claims quickly.
How to Get a Freight Broker Bond
- Request quotes from a few surety bond companies (you'll usually need to provide basic personal and business information and agree to a credit check).
- Compare premiums and terms, then purchase the bond.
- The surety files the BMC-84 electronically with the FMCSA on your behalf.
- Keep the bond active as long as you hold broker authority, and renew it on time.
The bond is one of the requirements for your freight broker license, along with your FMCSA application and a BOC-3 filing. Learn more in What is a freight broker?
Frequently Asked Questions
How much is a $75,000 freight broker bond?
You pay a yearly premium, not $75,000. With strong credit, premiums are often around 1%–2% ($750–$1,500 a year); with weaker credit they can be several thousand dollars a year.
What is the difference between BMC-84 and BMC-85?
BMC-84 is a surety bond: a surety company guarantees $75,000 for you in exchange for a yearly premium. BMC-85 is a trust fund: you set aside the full $75,000 yourself.
Is a surety bond the same as insurance?
No. The bond protects carriers and shippers you owe money to. If the surety pays a claim on your behalf, you have to repay the surety.
Do I need a state freight broker bond, for example in Georgia?
For brokering interstate freight, the $75,000 bond is a federal FMCSA requirement and is the same in every state, including Georgia. If you plan to broker loads only within one state, check that state's rules as well.
Do freight agents need a surety bond?
No. Freight agents work under a licensed broker's authority and bond. Only the broker needs the $75,000 bond or trust fund. Learn more about freight agents.
What happens if a claim is filed against my bond?
The surety investigates the claim. If it's valid and paid, your bond drops below $75,000 and you must restore it. Under the 2026 rule, if it isn't restored within seven business days of FMCSA's notice, your authority can be suspended. You also have to repay the surety for the claim.
Ready to get licensed as a freight broker? LearnFreight's online freight broker training walks you through licensing, the BMC-84 and BMC-85 forms, choosing between a bond and a trust fund, and running your brokerage, with support from our team. Training starts at $60/month with a 30-day money-back guarantee.