What it does
Under 49 CFR 387.307, "A broker must have a surety bond or trust fund of $75,000 in effect," and FMCSA will not register a broker until it is in place. Evidence of a surety bond must be filed on Form BMC-84; a trust fund is filed on Form BMC-85. Freight forwarders must also have a surety bond or trust fund in effect under 49 CFR 387.403.
Key rules
- The bond must remain in effect continuously. It may be cancelled only on 30 days' written notice to FMCSA on Form BMC-36.
- The surety must notify FMCSA when payments on claims would draw the bond below $75,000, and FMCSA will suspend the broker's authority unless the bond is restored within the deadlines in the rule.
- When a broker experiences financial failure or insolvency, the surety must accept claims for 60 days after FMCSA's public notice.
Who needs it
Every FMCSA-registered property broker and freight forwarder.
Selling notes
The BMC-84 is a surety bond protecting shippers and motor carriers, not insurance for the broker. Brokers also need their own contingent auto liability, contingent cargo and errors and omissions coverage, which the bond does not provide.
