Minnesota Freight Broker Bond

Minnesota Freight Broker BondThe Minnesota Freight Broker Bond (BMC-84) is required by the Federal Motor Carrier Safety Administration (FMCSA), in accordance with Title 49 §13906 of the United States Code for those individuals who will be registering as a freight broker in Minnesota.

According to the aforementioned clause, the Secretary can compel freight brokers to post a surety bond to assure the following:

  • Protect the freight brokers’ passengers financially.
  • Protect the carriers and freight brokers financially.

 

What is the surety bond amount?

The Freight Broker Bond amount is $75,000. You may be eligible to pay a very low bond premium or less than 1% of the total bond amount if you have an excellent credit score. Get to know the amount that you need to pay for this bond HERE.

 

What are the surety bond conditions?

  • Any damages caused during the bond’s term will be held against the Principal.
  • The bond will be valid until it is revoked. A 30-day cancellation notice is required in the event of cancellation.
  • A surety bond company authorized by the Secretary of Treasury, such as Surety Bond Authority, should issue the bond.
  • The Principal must follow the Federal Motor Carrier Safety Administration’s laws and regulations.
  • The Bond will be used to settle any claims brought against the freight broker as a result of the freight broker’s failure to pay freight charges specified in its contract.
  • The bond will guarantee financial responsibility and transportation in accordance with the ICC Termination Act of 1995.
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    How do I obtain a Freight Broker Bond? 

    The first step is to fill out and submit an applicationAn expert underwriter will start with the prequalification process soon after. The underwriter will check if you have performed your obligations on time in the past, your financial capability, credit score, and other important information.

    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 Household Goods
    • Motor Common Carrier of Household Goods
    • Broker of Household Goods
    • Broker of Property (except Household Goods)
    • United States-based Enterprise Carrier of International Cargo (except Household Goods)
    • Motor Contract Carrier of Property (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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