Freight Broker Bonds

Freight Broker Bonds

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A freight broker bond (BMC-84) or a trust fund agreement (BMC-85) is required by the Federal Motor Carrier Safety Administration (FMCSA) for freight brokers and freight forwarders before receiving a freight broker license.

Freight broker bonds vs trusts

  • Freight broker bonds are better because all assets remain available to your business instead of being tied up in the trust
  • Trust companies will often pay claims after little or no investigation because they have no liability
  • Placing $75,000 into a trust fund requires full collateral up front

Freight Broker Bonds

Freight Broker Bonds | Commercial Truck Insurance | CNS Insurance

What and Why?

What are Freight Broker Bonds?

An insurance broker bond is a promise that brokers will develop legal strategies to assist clients and abide by laws in the state of practice. The surety bond protects clients from potential fraudulent acts like price manipulation, or brokers falsifying information on claims.

The cost of your freight broker bond is a percentage of the $75,000 bond amount, typically 2-4% of the bond amount.

Like with new entrant commercial trucking insurance, if you have a low credit score or a new broker business, you will pay a higher premium. Freight brokers may be able to get a lower rate after a year or two of business without having any claims filed against the bond or if your credit score improves before you renew.

QUESTIONS?

plan of action

know your Coverage

It is important to keep in mind legal requirements when obtaining Freight Broker Bonds. Freight Broker Bonds is mandatory in all 50 states and failure to obtain coverage could cost you a lot of money in fines. By law, you must have a minimum of $75,000 surety bond before receiving a freight broker license.

Surety Bond
1 K

The surety company thoroughly investigates claims made against the bond prior to making a claim payment, shares the liability, and will do their best to mitigate claims made against the bond.

How to become a freight broker

In order to become a licensed freight broker, applicants must take several additional steps required by the FMCSA:

OP-1 Application

You need to file an OP-1 Application for Motor Property Carrier and Broker Authority

insurance coverage

You will need to provide proof of insurance coverage

BOC-3

You will need to submit a BOC-3 for Designation of Process Agent

filing fee

There will be a filing fee of $300

01

Request a quote

Before we can get you an estimate, we are going to need some information. Fill out the quick broker bond form below to get started.

02

Get bonded

After we gather all of your information we will get back to you with the best premium rate for your bond.

03

Start saving

Our insurance specialists are constantly working to get you the best rates, whether you are a new or existing client.

Get Started

Quick Freight Broker Bond Quote

Do you have an Insurance Submission Packet? (upload any relevant information about vehicles, drivers, etc.)

Customers Reviews

The guys over at CNS Insurance have the best prices compared to everyone else. Thank you guys.
Robert NievesOwner
Great insurance company! They are friendly and work with you in anyway and they get you on the road within hours.
Gustavo MendozaOwner
While shopping for insurance, Kiel was friendly & knowledgeable every step of the way in choosing a commercial insurance policy for my freight company. His communication was stellar and getting set up was easy as pie. Rates were awesome and competitive. Holly processes all of our COI requests and answers our questions in a very timely fashion. She is always helpful, prompt and attentive. We appreciate this in our industry more than words can describe because it’s so fast pace, having someone who can get you what you need expeditiously really matters. We are very pleased!
Marie AllenOwner
Miss Holly is an amazing account manager .. I just wanna say thank you for your help for the last 4yrs you guys been there for me .. I can name everybody from account to insurance and tax everyone they are very helpful team .. if you own a trucking company I will recommend CNS Insurance.
Truck AmarOwner
I was in a desperate time in my business and I really needed a breakthrough to continued to make money. Tony along with the team not only got me a great price to get my insurance they fought for me as if it was there own business. You do not find real people like that anymore and I will always remember the effort they put in to make sure I succeeded. If you want someone to get the job done these are the people you need guaranteed.
Kevin AntoineOwner
Excellent place, excellent staff, excellent communication, These guys help you out immediately when you call them. I work with Holly Turner númerouse of times and she”s been helpful and does everything immediately, I recommend CNS Insurance to anyone who needs help with insurance.
Myrian BedoyaOwner
Only started doing business with them six weeks ago but looking forward for us to have a great long term relationship. Thanks for all you do.
Miguel McKenzieOwner
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