Glossary
BMC-84 Bond
A BMC-84 bond is a surety bond that a freight broker files with the Federal Motor Carrier Safety Administration to show financial responsibility and to secure payment of claims by carriers and shippers.
Federal rules require property freight brokers and freight forwarders to maintain financial security as a condition of their FMCSA operating authority. A broker can meet the requirement with a BMC-84 surety bond or with a BMC-85 trust fund agreement, and the current required amount is $75,000. The bond is issued by a surety company and is intended to pay claims by motor carriers and shippers when the broker fails to meet its obligations under its contracts, such as failing to pay a carrier for a hauled load.
When a broker stops paying, an unpaid carrier can file a claim with the surety that issued the bond. The surety typically asks for proof such as the rate confirmation, bill of lading, proof of delivery, invoices, and evidence of nonpayment. Because the bond amount is capped, a failing broker with many unpaid carriers may generate claims far larger than the bond. In that situation, sureties may wait for a claim period to pass and then divide the bond among valid claimants, so each recovers only part of its loss. FMCSA has updated its broker financial responsibility rules in recent years, so carriers should check current requirements and filing practices.
Here is a fictional example. A small trucking company, Prairie Wind Transport, hauls five loads for a broker and is owed $14,200. The broker stops answering calls, and FMCSA records show its authority is being revoked. Prairie Wind looks up the broker's bond or trust information on the FMCSA public registry, files a claim with the surety right away with full documentation, and also explores whether it can pursue the shipper directly under the bill of lading terms.
The BMC-84 bond matters to carriers and shippers because it is often the only readily available source of payment when a broker collapses. Acting fast, documenting every load, and filing a complete claim improve the odds of recovering something from a limited bond.
Example
Prairie Wind Transport is owed $14,200 by a failing broker. It finds the bond on the FMCSA registry and files a documented claim with the surety immediately.