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Freight Brokers Insurance

Surety Bonds Insurance
for Freight Brokers

FMCSA requires all licensed freight brokers to maintain a $75,000 BMC-84 surety bond or trust fund. Without a current, valid bond, your freight broker license will be revoked — ending your ability to legally broker loads. This is the most critical compliance requirement for any freight broker.

Industry-Specific Insight

Why Freight Brokers Businesses Need Surety Bonds Insurance

FMCSA requires all licensed freight brokers to maintain a $75,000 BMC-84 surety bond or trust fund. Without a current, valid bond, your freight broker license will be revoked — ending your ability to legally broker loads. This is the most critical compliance requirement for any freight broker.

Coverage Details

What Surety Bonds Insurance Covers

Key protections included in a surety bonds policy for freight brokers operations.

Contract (construction) bonds — bid bonds, performance bonds, and payment bonds for construction projects
License and permit bonds required by state or local governments for business licensing
Court bonds required during legal proceedings
Fidelity bonds protecting clients against dishonest acts of your employees
Notary bonds and other fiduciary bonds required for public roles
Federal, state, and municipal contract bid requirements

FAQs

Common Questions from Freight Brokers Businesses

What happens if my BMC-84 bond is cancelled?

FMCSA will revoke your broker authority. Most bonds require a 30-day notice of cancellation, giving you time to replace it — but don't let it lapse. We monitor renewal dates for our broker clients.

How is the BMC-84 bond amount of $75,000 determined?

The $75,000 amount is set by federal regulation. It's the minimum required by FMCSA for all licensed freight brokers, regardless of company size or revenue.

Is a surety bond the same as insurance?

Not exactly — insurance protects the policyholder from loss. A surety bond protects the obligee (the party requiring the bond) if the bonded party fails to perform. The bonded business is expected to repay any claims paid by the surety. It's more of a credit guarantee than a traditional insurance product.

What is the difference between a performance bond and a payment bond?

A performance bond guarantees that a contractor will complete the contracted work. A payment bond guarantees that the contractor will pay their subcontractors, laborers, and suppliers. On public projects over a certain value, federal law (the Miller Act) requires both.

Complete Coverage

Other Coverages Freight Brokers Businesses Commonly Need

A complete protection plan for freight brokers operations typically includes several complementary coverages.

We serve freight brokers businesses in:

Freight Brokers · Surety Bonds

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