BMC-84 Bonds are typically $75,000 in amount and cover a wide range of potential claims, including:
- Failure to pay motor carriers for transportation services rendered
- Failure to deliver freight to shippers on time or in good condition
- Engaging in fraudulent business practices
If a claim is filed against a BMC-84 Bond and is found to be valid, the surety company will pay the claimant up to the amount of the bond. The surety company will then pursue reimbursement from the freight broker.
BMC-84 Bonds play an important role in protecting the trucking industry and the public from financial losses caused by dishonest or incompetent freight brokers. They also help to ensure that freight brokers comply with FMCSA regulations.
Here are some specific examples of how a BMC-84 Bond can protect motor carriers and shippers:
- A shipper hires a freight broker to arrange for the transportation of their goods. The freight broker contracts with a motor carrier to transport the goods, but then fails to pay the motor carrier for the services rendered. The motor carrier can file a claim against the freight broker’s BMC-84 Bond to recover payment.
- A freight broker books a shipment with a motor carrier, but then fails to deliver the freight to the shipper on time. The shipper can file a claim against the freight broker’s BMC-84 Bond to recover damages for the late delivery.
- A freight broker engages in fraudulent business practices, such as misrepresenting their services or issuing fraudulent bills of lading. The motor carriers and shippers who have been harmed by the freight broker’s fraudulent practices can file claims against the freight broker’s BMC-84 Bond for compensation.
BMC-84 Bonds are an important part of the trucking industry and play a vital role in protecting motor carriers and shippers from financial losses. CLICK HERE TO APLLY FOR A BMC-84 Surety Bond.
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