Owner-Operators Insurance
Surety Bonds Insurance
for Owner-Operators
Owner-operators who want to broker freight as well as haul it need an FMCSA-required freight broker bond (BMC-84) in the amount of $75,000. This bond is also required to maintain a freight broker license if you ever expand your business.
Industry-Specific Insight
Why Owner-Operators Businesses Need Surety Bonds Insurance
Owner-operators who want to broker freight as well as haul it need an FMCSA-required freight broker bond (BMC-84) in the amount of $75,000. This bond is also required to maintain a freight broker license if you ever expand your business.
Coverage Details
What Surety Bonds Insurance Covers
Key protections included in a surety bonds policy for owner-operators operations.
FAQs
Common Questions from Owner-Operators Businesses
Does every owner-operator need a BMC-84 bond?
Only if you have or want freight broker authority. If you're only operating as a motor carrier (hauling freight), you don't need a broker bond.
How much does a freight broker bond cost?
A $75,000 BMC-84 bond typically costs $1,500–$3,000 per year depending on your credit. Those with strong credit can often get significantly lower rates.
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 Owner-Operators Businesses Commonly Need
A complete protection plan for owner-operators operations typically includes several complementary coverages.
Owner-Operators · Surety Bonds
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