Freight Broker Surety Bonds, also known as a BMC-84, is a legally binding contract that safeguards service providers and carriers.
There are three parties associated with the contract:
- The products broker
- The event needing the bond, FMCSA
- The surety company
A BMC-84 is needed if you intend to acquire your brokerage authority. It was formerly called an ICC bond and is often described as a property broker or transportation broker bond.
The function of a bond is straightforward: If you break the FMCSA’s guidelines, an insurance claim will be made against your bond.
You’ll be accountable for paying those cases. A range of reasons can make claims against your bond consisting of late repayments to motor carriers.
The new transportation law Moving Ahead for Progress in the 21st Century (MAP-21) raised the surety bond demands for brokers as well as forwarders from $10,000 to $75,000 in 2013.
Freight broker bonds can be digitally filed with the FMCSA, so there’s no requirement to fret about laborious paperwork. Once the bond is approved, you’ll get a confirmation as well as needs to have the ability to see your bond coverage on the FMCSA website within one day.
Products Broker Certificate Needs
To start your brokerage, you’ll need to finish several actions and satisfy several demands.
- Obtain Your Mc Authority
The primary step is to acquire your MC, motor carrier, authority, or MC number. This procedure will take several weeks, so you’ll intend to get started immediately.
- Get Products Broker Insurance Policy
The FMCSA calls for all products carriers and forwarders to bring responsibility insurance coverage. Nevertheless, if you’re running exclusively as a freight broker, insurance coverage is not called for.
- Obtain Handling Agents
A handling agent will be required for every state in which you’ll be running. If you’re working entirely as a broker, the word “operating” describes your office and where you make contracts. Motor Carriers will require processing agents in all states where their products will pass.
- Get Your BMC-84
The next step is to protect your BMC-84 via a trustworthy and trusted guaranty company.
- Acquire Your Unified Provider Registration
The final step is to acquire your Unified Carrier Registration (UCR).
