Freight Broker Bond (formerly ICC Bond)
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- What will a freight broker bond cost me?
The cost is a portion of the bond amount. However, freight broker bonds are considered to be one of the highest risk bond requirements therefore, their rates are higher than most other bonds. In fact, most companies do not write freight broker bonds. The few that do usually require 100% collateral to be posted with the bond. We have exclusive programs that offer freight broker bond quotes with no collateral. Better yet, our website approves you instantly online.
- What is the difference between the BMC-84 bond and the BMC-85 trust fund?
The BMC-84 surety bond is an insurance company guaranteeing your company. The BMC-85 trust fund is your cash, held by a bank guaranteeing your company.
- Is the BMC 84 surety bond the best option?
It depends. If your bond approval requires 100% collateral, you are better off creating a BMC-85 trust fund to save on bond premiums. However, if you can qualify for the BMC 84 bond with no or little collateral, it is always a better choice. The trust fund ties up your money, while the bond only requires an annual premium payment, which is a percentage of the bond amount. The bond also comes with a team of claim specialists that will assist you in fighting false claims, which is invaluable since the freight broker business has a high frequency of false claims.
- What is the required freight broker bond amount?
Currently, it is a $10,000 bond, although, there has been a proposed freight broker bond increase to $75,000.
- What are the freight broker bond requirements?
You'll need to apply with the FMCSA and obtain your freight broker authority, which is sometimes referred to as an MC number. Once you have your authority, you can obtain a freight broker bond. Our exclusive freight broker bond programs have very liberal underwriting requirements. Whether you have good or bad credit, we can help!
- Where can I get a BMC 84 bond form?
There is no physical bond form, as it is an electronic bond filing, which we will handle for you. Once your bond is filed, you can view it on the FMCSA website.
- Are there other names the freight broker bond is called?
Yes. It is also referred to as a trucking surety bond, a transportation broker surety bond and a BMC-84 surety bond. In the past, it was called an ICC surety bond prior to the FMCSA handling all freight broker licensing.
- What if I have a false claim?
These bonds have a high amount of false claims due to delayed payment to carriers. We specialize in working with the surety claims department to help you properly defend yourself on false claims. We recommend you watch our video to learn more about bond claims.
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Freight Broker Bond Cost
The cost is based on a percentage of the bond amount, which will vary by the applicant's personal credit and experience in the industry. You can get a ballpark estimate, or you can apply directly on our website and get an exact quote.
Get A Transportation Broker Bond With Bad Credit
You can get approved for a freight broker bond, even with bad credit. This is made possible by our high risk market, which is exclusive to JW Surety Bonds. Should you go to another agency, they will likely broker the bond through us, possibly costing you extra money and time.
BMC 84 Surety Bond vs. BMC 85 Trust Fund
The BMC-84 and BMC-85 are the forms used for the surety bond and trust fund options. Either one will allow you to obtain your freight broker license. Find our comparison table below to determine which option fits best for you. You can also watch our video to learn more about obtaining your freight broker license.
|BMC 84 (Surety Bond)||BMC 85 (Trust Fund)|
|Licensing||✔ Allows freight broker to obtain license||✔ Allows freight broker to obtain license|
|Collateral||✔ Little or no collateral required||✘ Full collateral is required|
|Yearly Fee||✘ A portion of the bond amount is charged||✘ Charged by the bank & company who set up the trust|
|Ease To Obtain||✔ Anyone can obtain||✔ Anyone can obtain|
|Claim Investigation||✔ Full investigation of claims||✘ Often no investigation of claims|
The BMC 84 is used for the surety bond option, and is filed electronically on the FMCSA (Federal Motor Carrier Safety Administration) website. Freight broker surety bonds are a form of surety credit to you. Rather than posting your own money to be held by a bank, the bonding company provides a guarantee to the FMCSA. This frees up working capital, improving your liquidity, which helps you to operate a more financially sound business.
In the event of a claim, bonding companies also have experienced claim specialists to assist you, as their bond ultimately leaves them liable if you cannot pay for a claim. In most cases, bonds do not require you to post any collateral, just an annual premium fee, which is a small percentage of the bond amount. As the leading writer of U.S. freight broker bonds, JW Surety Bonds has exclusive access to a specialty bond program allowing for the approval of both good and bad credit applicants at exceptional rates.
The BMC 85 form is used for the trust fund option, for which you must post cash in the full dollar amount of the bond. Your funds act as the guarantee that you will not trigger any claims. Should a claim be triggered, your money will be used to pay it. A bank will hold your funds as long as you have an active license/authority, while charging fees and tying up your assets.