Bond Amount
$75,000
Typical Premium
$938–$10,000+/yr
Term
Continuous
Required By
FMCSA (Federal Motor Carrier Safety Administration)
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What Is the California Freight Broker Bond (BMC-84)?

The freight broker bond is a federal requirement under 49 U.S.C. §13906, set at $75,000 by the MAP-21 transportation legislation. It is filed with FMCSA on Form BMC-84 and protects motor carriers and shippers from financial loss caused by:

The bond runs continuously until canceled. FMCSA requires 30 days' written notice from the surety before any cancellation, during which time the broker must replace the bond or face immediate loss of MC authority.

Who Needs This Bond in California?

Trucking companies operating their own equipment (motor carriers) do not need the broker bond unless they also broker freight for other carriers.

How Much Will the Bond Cost?

Freight broker bond premiums are heavily credit-driven. Top-credit brokers pay around 1.25%; challenged-credit applicants may pay 8–13%:

Credit ProfileAnnual PremiumApprox. Rate
Excellent Credit$938 – $1,5001.25% – 2%
Good Credit$1,500 – $2,2502% – 3%
Fair Credit$2,250 – $3,7503% – 5%
Credit Challenges$3,750 – $7,5005% – 10%
Past Credit Issues$7,500 – $10,000+10% – 13%+

How to Get Bonded — Step by Step

  1. Form your business and obtain MC authority application from FMCSA (Form OP-1).
  2. Apply for the bond. Submit the form on this page; underwriting reviews credit and business experience.
  3. Receive your quote. Most brokers receive a quote within 24 hours.
  4. Pay premium. Payment plans available for higher-premium accounts.
  5. FMCSA filing. Surety files the BMC-84 directly with FMCSA via the Unified Registration System.
  6. Wait for active authority. FMCSA grants active brokerage authority approximately 21–25 days after bond and OP-1 filing.

Renewal & Continuous Bond Coverage

The BMC-84 freight broker bond is continuous — it remains in force until canceled by the surety or broker with 30 days' notice to FMCSA. Premium is billed annually. Letting the bond lapse for any reason results in immediate suspension of MC authority and removal from FMCSA's licensed broker list.

Frequently Asked Questions

BMC-84 vs. BMC-85 — what's the difference?

BMC-84 is a surety bond (you pay annual premium, surety guarantees up to $75,000). BMC-85 is a trust fund where you deposit the full $75,000 in cash with a financial institution. Most brokers choose BMC-84 because it preserves working capital.

Can I lower the bond amount if I do low volume?

No. The $75,000 amount is set by federal statute (MAP-21, 2013) and is uniform regardless of broker size or volume.

What happens if a carrier files a claim?

The surety investigates. If the claim is valid (e.g., unpaid invoice with proper documentation), the surety pays the carrier up to the bond limit and you must reimburse the surety. Multiple claims often trigger non-renewal.

Does this bond cover surface freight forwarders the same way?

Yes — freight forwarders file the same BMC-84 at the same $75,000 amount under the same FMCSA rules.

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Related: All California surety bonds · What is a surety bond? · How surety bond costs are calculated

Underwriting Disclosure. All surety bond applications are subject to underwriting review and approval by the issuing surety company. Quoted premiums are estimates only; final pricing is determined by individual underwriting factors, which may include personal and business credit history, financial statements, industry experience, and claims history. Many bonds qualify for instant online approval, while others may require additional documentation, financial review, or indemnitor signatures prior to issuance. SuretyBondly makes no representation, warranty, or guarantee of approval, eligibility, premium amount, bond form, or issuance timing. Bond amounts, forms, and requirements are governed by the applicable obligee and statutory authority and may change without notice. Information provided on this page is for general informational purposes only and does not constitute legal, financial, or tax advice.