BMC-84 bond claims
Filing a claim against a freight broker's bond (BMC-84).
Federal law requires property brokers to keep financial security, commonly a BMC-84 surety bond or a BMC-85 trust. When a broker doesn't pay, a carrier or shipper may be able to file a claim against it.
The basics
Under federal law, licensed property brokers (and freight forwarders) must maintain financial security, currently $75,000, typically through a BMC-84 surety bond or a BMC-85 trust fund agreement. It exists so that carriers and shippers can be paid when a broker fails to meet its obligations under its contracts. FMCSA has adopted rules updating how broker financial security works, including what happens when a bond or trust is drawn down or a broker becomes insolvent. Check the current rules before relying on any summary, including this one.
How a bond claim generally works
- Identify the surety: look up the broker's MC number in FMCSA's Licensing & Insurance records.
- Submit a written claim to the surety with the rate confirmation, BOL, signed POD, invoice, your demand to the broker and proof of non-payment. Some sureties have their own forms.
- The surety investigates. It typically contacts the broker, which may dispute the claim, and may pay, deny or hold claims.
- Multiple claimants: when a broker fails, many carriers may claim against the same $75,000. Sureties may hold claims for a period and then pay them pro rata, so a valid claim may only be partly paid.
Limits to keep in mind
- The bond amount is capped. It isn't a guarantee of full payment.
- Sureties can deny claims they consider unsupported or outside the bond's scope.
- A bond claim doesn't necessarily stop the clock on lawsuit deadlines. Consider the 18-month limit.
- You may still pursue the broker and other liable parties directly.
Not legal advice. This page is general information about U.S. freight-payment rules, not legal advice. Federal and state transportation law is technical, depends on the facts and changes over time. FMCSA rules on broker financial security were also being updated as of this writing. CollectionPlacement is a referral service, not a law firm or collection agency. Consult a transportation attorney about your situation.
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Frequently asked questions
How much is a freight broker bond?
Federal rules currently require brokers to maintain $75,000 in financial security, commonly via a BMC-84 surety bond or BMC-85 trust.
How do I file a claim on a freight broker bond?
Find the surety through FMCSA's Licensing & Insurance records, then submit a written claim with the rate confirmation, BOL, POD, invoice and proof of non-payment. Follow the surety's procedures.
Will the bond pay my full invoice?
Not necessarily. The bond is capped, and if many claims are filed against the same broker, payments may be reduced or prorated.
What is the difference between a BMC-84 and BMC-85?
A BMC-84 is a surety bond and a BMC-85 is a trust fund agreement. Both are forms of broker financial security filed with FMCSA.
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