What is a Minnesota Freight Broker Bond?
The 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.
It is stated in the aforementioned section that the Secretary can enforce a surety bond to freight brokers in order to ensure the following:
- To financially protect the passengers of the freight brokers
- To financially protect the carriers of the freight brokers
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 fill out and submit an application.
An 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!
What are the other requirements in order 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.
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