If you've researched freight brokers at all, you've probably run into the term "BMC-84" or "freight broker bond." It sounds like paperwork trivia, but it's actually one of the more useful things a shipper can check before trusting a broker with a load.
The short version
The FMCSA requires every licensed property broker to maintain a $75,000 surety bond (BMC-84) or trust fund (BMC-85). This isn't optional, and it isn't a one-time fee — it's a standing financial guarantee that has to stay in place for a broker to legally operate.
What the bond actually protects against
The bond exists to cover shippers and carriers if a broker fails to meet its financial obligations — most commonly, if a broker doesn't pay a carrier for a completed load, or breaches its contract obligations to a shipper or carrier in a way that causes financial loss. A shipper or carrier can file a claim against the bond to recover losses tied to broker misconduct or insolvency.
It's important to be clear about what the bond is not: it's not cargo insurance, and it doesn't cover damage to freight in transit. That's a separate coverage question — see the "cargo insurance" section of our 10 questions to ask a broker post.
Why $75,000, and why it matters more than it sounds
The bond amount was raised from $10,000 to $75,000 in 2013, specifically to weed out undercapitalized brokers who could disappear or default without consequence. Maintaining that bond has a real cost, and brokers who let it lapse lose their operating authority — which is exactly why checking bond status is a meaningful signal, not a formality.
How to verify a broker's bond status
You can look up a broker's authority status, including whether their bond or trust fund is active, directly through FMCSA's Licensing & Insurance system using their USDOT or MC number. A broker who hesitates to give you that number, or whose authority shows as revoked or pending, is not one to book a load through.
Freight Broker Group's licensing
Freight Broker Group LLC operates under USDOT #4413464 and MC #1734098, maintained in good standing as required for our operating authority. You can verify this directly through FMCSA, or reach out through our contact page if you'd like the details walked through.
Bond vs. insurance — the distinction that trips people up
The broker bond protects against broker financial misconduct. Cargo and liability insurance — carried by the carrier, not the broker — protects against loss or damage to freight in transit. A financially sound broker relationship involves both being in order, which is exactly what we verify before dispatching any carrier. See how we vet carriers for the insurance side of that equation.