Utah Freight Broker Bond
Get registered as a Freight Broker by getting bonded!
The Freight Broker Bond is required by the Federal Motor Carrier Safety Administration (FMCSA), by Title 49 §13906 of the United States Code for those individuals who will be registering as a freight broker in Utah. This surety bond is also referred to as the BMC-84 bond.
A surety bond will act as a guarantee that the freight broker will fulfill his or her contractual obligations in compliance with the U.S.C. provision and pay any claims that may arise.
What is the bond amount?
The Freight Broker Bond amount is $75,000.
Depending on your credit score, if you have an excellent score, you may be eligible to pay a very low bond premium or less than 1% of the total bond amount.
What are the bond conditions?
- The Principal shall comply with the rules and regulations of the Federal Motor Carrier Safety Administration
- 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
- 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 will be held liable for any damages committed during the term of the bond
Getting a Freight Broker Bond
FIRST: Submit an application form.
SECOND: An underwriter will start with the prequalification process. The underwriter will check your credit score, financial capability, if you have performed your obligations on time in the past and other relevant information.
Once qualified, you will be asked to sign an indemnity agreement and we will complete the BMC-84 or Freight Broker Bond form for you.
What are the other requirements to be registered as a Freight Broker?
- Completed Motor Property Carrier and Broker Authority application form
- Pay the necessary processing fee of $300 per Operating Authority such as the following:
- United States-based Enterprise Carrier of International Cargo (except Household Goods)
- Motor Common Carrier of Household Goods
- Motor Contract Carrier of Household Goods
- United States-based Enterprise Carrier of International Household Goods
- Broker of Property (except Household Goods)
- Motor Contract Carrier of Property (except Household Goods)
- Motor Common Carrier of Property (except Household Goods)
- Broker of Household Goods
The processing time would be about four to six weeks. Once approved, you will get your MC number or Operating Authority.
To get bonded easily, Start HERE!