The bond is required by the Federal Motor Carrier Safety Administration. Both freight brokers and freight forwarders are required to provide the BMC-84 surety bond. (See our blog post about the difference between freight brokers and freight forwarders.)
The bond is in place to protect the public—it is not insurance. If a claim is filed on the bond, you will be expected to address the claim. If the surety company has to pay on the bond, it will seek reimbursement from the bond holder.
Freight broker training courses can be valuable to people interested in pursuing this career. The course can help potential freight brokers learn about contract negotiations and sales techniques. Many courses will include training on marketing methods and calculating freight rates. One also can learn about broker specific software, dispatching and tracking loads, factoring, and finding the proper freight and trucks. Some schools offer a week-long course in freight broker training and other schools offer training courses online.
The FMCSA now requires a bond in the amount of $75,000. Surety1 can get this bond for you! The underwriting is largely based on personal credit. To obtain the lowest possible rate, business and personal financial statements will be required. The cost for this bond can be as low as $938.00 per year. To obtain this rate, you must have excellent credit and meet other underwriting criteria. For as slightly higher premium, the bond can be obtained without submitting financial statements. Even with less than perfect credit and no financial disclosure, Surety1 can get a quote.
We can obtain a quote for you before you get your MC number; however, we must receive your MC number before the bond can be issued as this bond is filed electronically.
Sometimes this bond is a little more difficult to get with other surety companies; however, Surety1 has access to the BEST markets available so we’re able to get you a firm quote no matter your situation.