What is an Iowa Freight Broker Bond?

Iowa Freight Broker BondFreight broker registration applicants are required by the Federal Motor Carrier Safety Administration (FMCSA) to submit a surety bond. The requirement is in accordance with Title 49 §13906 of the United States Code.

The purpose of an Iowa Freight Broker Bond (BMC-84) is to financially protect the passengers and carriers in case the freight broker failed to fulfill his or her contractual obligations.

What is the bond amount?

The Freight Broker Bond amount is $75,000.

If you have an excellent credit score, you may be eligible to pay a very low bond premium or less than 1% of the total bond amount!

Find out you need to pay for this bond today! Get your FREE quote here!

What are the bond conditions?

  • The bond should be issued by a surety bond company who is authorized by the Secretary of Treasury such as Surety Bond Authority
  • The bond will ensure financial responsibility and the supplying of transportation subject to the ICC Termination Act of 1995
  • The Principal shall comply with the rules and regulations of the Federal Motor Carrier Safety Administration
  • The Principal will be held liable for any damages committed during the term of the bond
  • The Bond will be used to pay any claim made against the freight broker from the freight broker’s failure to pay freight charges stated in its contract
  • The bond will remain valid until canceled. In case of cancellation, a 30-day notice is required

How do I obtain a Freight Broker Bond? 

The first step is to submit an application.

An expert underwriter will start with the prequalification process soon after. The   underwriter will check the following:

  • If you have performed your obligations on time in the past
  • Your financial capability
  • Your credit score

Once qualified, you will be asked to sign an indemnity agreement. We will complete the BMC-84 or Freight Broker Bond form for you, and that’s it!

You’re bonded!

What are the other requirements to be registered as a Freight  Broker?

  • Completed Motor Property Carrier and Broker Authority application form (OP-1)
  • Pay the necessary processing fee of $300 per Operating Authority such as the following:
  • Motor Common Carrier of Property (except Household Goods)
  • Motor Contract Carrier of Property (except Household Goods)
  • Motor Common Carrier of Household Goods
  • Motor Contract Carrier of Household Goods
  • Broker of Property (except Household Goods)
  • Broker of Household Goods
  • United States-based Enterprise Carrier of International Cargo (except Household Goods)
  • United States-based Enterprise Carrier of International Household Goods

The processing time will be 4-6 weeks. Once approved, you will get your MC number or Operating Authority.

Need to get bonded immediately? Start HERE!

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