Broker Bond (BMC-84 / BMC-85)
The $75,000 surety bond or trust fund every property broker must maintain on file with FMCSA as a condition of broker authority, raised from $10,000 by MAP-21. It compensates carriers and shippers when a broker fails to pay. A cancelled bond filing revokes broker authority and is a classic precursor to broker default.
Learn moreWhat is Broker Bond?
The broker bond is the financial security instrument that property brokers (and freight forwarders) must file with FMCSA to hold active authority. MAP-21, effective in 2013, raised the requirement from $10,000 to $75,000 — a change intended to push undercapitalized and fraud-prone brokers out of the market. The requirement can be satisfied two ways: a BMC-84 surety bond, where a surety company guarantees the amount for an annual premium, or a BMC-85 trust fund, where the broker deposits the full $75,000 in trust. When a broker fails to pay a carrier for a delivered load, the carrier files a claim against the bond; if valid claims exceed $75,000, the surety typically interpleads the funds and claimants share pro rata — which is why the bond is protection of last resort, not a substitute for vetting the broker. Bond cancellation is the critical signal: sureties cancel when a broker's claims activity or financials deteriorate, FMCSA revokes broker authority roughly 30 days after an unreplaced cancellation, and a broker in that window is a default risk. CarrierOk tracks bond filings and authority status across every FMCSA-registered entity with same-day authority change alerts.
Why does broker bond matter?
Insurance Underwriters
For contingent cargo and broker liability programs, bond cancellation history is a leading indicator of financial distress — a broker cycling through sureties is a materially different risk than one with a decade on the same bond.
Freight Brokers
Your bond filing is your license to operate — but for carrier-side vetting, the counterparty's bond status matters too: a recently cancelled or replaced bond on a broker you're co-brokering with signals payment risk and possible double-brokering exposure.
Developers & Platforms
Combine authority_broker with insurance_bond_on_file to verify a broker is both authorized and secured; alert on bond cancellations rather than polling, since the revocation clock runs quickly once a surety cancels.
Key values & thresholds
| Category | Value |
|---|---|
| Required Amount | $75,000 (MAP-21) |
| BMC-84 | Surety bond, annual premium |
| BMC-85 | Trust fund, full cash deposit |
| Applies To | Property brokers & freight forwarders |
Broker Bond in the CarrierOk API
This data is available via the /v2/profile endpoint. The following fields are returned in the carrier profile:
/v2/profileauthority_brokerinsurance_bond_on_filetotal_revocationsFrequently asked questions
What is the difference between a BMC-84 bond and a BMC-85 trust fund?
Both satisfy the same $75,000 FMCSA requirement. A BMC-84 is a surety bond: the broker pays an annual premium (typically a small percentage of the bond amount, priced on credit) and the surety company backs the obligation. A BMC-85 is a trust fund: the broker deposits the full $75,000 in cash with a trustee. BMC-84 is far more common because it doesn't tie up capital, but it requires underwriting — a broker who can only qualify for a BMC-85 or a high-rate bond may itself be a credit signal.
What happens when a broker's bond is cancelled?
The surety notifies FMCSA, and if the broker does not file replacement security, FMCSA revokes the broker's operating authority — the cancellation-to-revocation window is roughly 30 days. A broker operating in or after that window is uninsured against its payment obligations and legally unable to broker freight once revocation takes effect. Bond cancellation is one of the most reliable early warnings of broker failure, which is why carriers and factoring companies monitor it: unpaid invoices pile up fastest in the weeks around a cancellation.
Does the $75,000 bond fully protect carriers from broker non-payment?
No. The bond is a shared, capped pool — when a broker defaults, every unpaid carrier files against the same $75,000, and if claims exceed the amount, the surety interpleads and claimants recover pro rata. In a sizable broker collapse, recovery percentages can be small. The bond deters fly-by-night entrants and provides last-resort recovery, but it does not replace vetting the broker's authority age, payment history, and bond stability before hauling on credit.
Related terms
Operating Authority
FMCSA-granted permission for a motor carrier, broker, or freight forwarder to operate in interstate commerce. Authority types include common (general for-hire), contract (specific shippers), and broker. CarrierOk tracks authority status changes same-day and flags monitored carriers when authority lapses or is revoked.
Double Brokering
The illegal practice of a broker or carrier re-brokering a load to another carrier without the shipper's knowledge or consent. Double brokering creates insurance gaps, liability exposure, and fraud risk. CarrierOk's risk signals and authority-type checks help identify carriers associated with double-brokering patterns.
MC Number (Motor Carrier Number)
A docket number assigned by FMCSA to for-hire carriers and brokers when they register for operating authority. Unlike DOT numbers (required for all interstate CMV operators), MC numbers are specific to for-hire and brokerage operations. CarrierOk supports lookup by MC number, DOT number, or legal name.
Freight Forwarder
An FMCSA-registered entity that consolidates shipments, takes possession of freight, issues its own bill of lading, and assumes carrier-level responsibility for the move — unlike a broker, which arranges transport but never touches the freight. Forwarders carry FF authority and must file both liability and cargo insurance.
Freight Factoring
A financing arrangement where carriers sell their freight invoices to a factoring company at a discount for immediate cash instead of waiting 30-90 days for broker payment. Factors carry the carrier's credit and fraud risk, so they vet authority status, revocation history, and viability before buying receivables. CarrierOk delivers same-day authority change alerts for monitored portfolios.
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