Broker bond ($75,000 federal surety)

The freight broker bond is the $75,000 federal financial responsibility requirement FMCSA mandates for every property broker, satisfied via BMC-84 surety bond or BMC-85 trust fund.

The bond responds to carrier non-payment claims, cargo claims from shippers, and a narrow category of freight-payment-related disputes. The surety pays out up to $75,000 per claim category and then pursues the broker for reimbursement.

Median trucking verdict in the United States is approximately $36 million. The bond is roughly 0.2% of the median verdict. Treating the bond as liability coverage is the most common and most expensive mistake in broker risk management.

Why this matters for freight brokers

The bond is a payment guarantee, not insurance. It does not cover bodily injury, wrongful death, negligent hiring, or punitive damages. Brokers conflating bond coverage with liability protection are uninsured for the post-Montgomery exposure category.

Related terms

• BMC-84 — BMC-84 is the surety-bond form a freight broker files with FMCSA to satisfy the $75,000 federal financial responsibility requirement.
• BMC-85 — BMC-85 is the trust-fund alternative to the BMC-84 surety bond for satisfying the $75,000 federal financial responsibility requirement for freight brokers.
• Surety bond — A surety bond is a three-party agreement in which a surety company guarantees payment from one party (the principal) to another (the obligee) up to a specified amount.
• Contingent auto liability insurance — Contingent auto liability is third-party bodily injury and property damage coverage that responds when a motor carrier's primary auto policy fails to pay a claim arising from a load arranged by the broker.