The Freight Broker Bond (BMC-84) is a license surety bond required by the Federal Motor Carrier Safety Administration (FMCSA). The bond is required of businesses intent on obtaining a property broker license, from the FMCSA. The bond provides a form of protection for motor carriers hired by the licensed broker. The bond protects the payments due the motor carrier for jobs completed for the broker. The FMCSA Freight Broker surety bond requirement is continuous, meaning that as long as the operating authority is in place, the surety bond requirement remains as well.
Freight Broker bonds have a $10,000 bond penalty (bond amount). The penalty amount is set to increase to $75,000 as of October 1st 2013.
Freight Broker bonds are sometimes referred to as ICC Broker bonds. The Interstate Commerce Commission (ICC), an abolished federal agency, was at one time the agency that administered motor carrier licensing. The ICC was abolished in 1995. Motor carrier licensing administration responsibilities were transferred to to the FMCSA, a division of the Department of Transportation (DOT).
Freight broker bonds provide a form of recourse for a motor carrier hired by a broker. If a motor carrier has not received payment for a job for which payment is due, potentially, a claim can be made on the surety bond. The Surety, the company providing the guarantee behind the bond, if unable to remedy the situation, would be required to make payment up to the bond penalty amount. The surety would then attempt to collect the paid claim amount from the broker. Ultimately, the broker is responsible for any amount paid out on a claim.
Freight Broker bond rates vary greatly depending on the qualification of the bond applicant/s. The rates are determined based on various factors which include credit standing and may include financial standing as well.
The best way to get a truly accurate quote for a Freight Broker Bond is to apply for the bond and let the underwriter review the request and put a quote together.
Viking Bond Service, Inc. will always attempt to get the best rate for any surety bond request. In instances where the rate is high to start due to challenged credit, our renewal department can remarket the bond for a lower rate if there has been an improvement in credit and/or financial standing.
With there being a standard bond amount and an electronic method of filing the bond, there are no special requirements needed to apply for the freight broker bond and get a quote in most cases. The MC number, the operating authority applied for with the FMCSA, will need to be provided prior to issuance of the bond but is not always needed up front to apply and get a quote.
Viking offers fast quotes and great rates for Auto Dealer Bonds nationwide.
At times, a Utility Deposit Bond may be required by some public utilities to start service. Learn more and get a fast quote.
Credit challenges are not always a barrier to obtaining a Surety Bond. Often times, Viking can quote your request despite a poor credit rating.
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