freight broker bond cost

The BMC-84 Freight Broker Bond, like most other commercial surety bonds, is paid for on an annual basis. The premium to be paid is determined during the underwriting process, and is figured as a percentage of the bond amount.  For Freight Brokers and Forwarders the Federal Motor Carrier Safety Administration (or FMCSA) requires $75,000 to be posted. Though rates can fall between whole percentages, below is a chart showing what premium payments could look like:

1%

2%

3%

4%

5%

6%

7%

8%

9%

10%

$750

$1,500

$2,250

$3,000

$3,750

$4,500

$5,250

$6,000

$6,750

$7,500

What Determines My Percentage?

Depending on the market used, the underwriter will consider some or all of the following criteria:

  • Credit of ownership (credit score, age/status of any Public Records)
  • Years in Business
  • Financials
  • Experience

Currently the largest determinate is credit. In fact, it is so important that it is the first thing examined by all markets. To further illustrate that point, we have specialty programs that are developed where approvals are based off credit alone. This holds true for both strong applicants as well as those that may be considered higher risk due to poor credit.

Those with good credit have additional options. If these applicants are able to submit financials and/or a resume they may be able to find lower rates then our credit only markets as these items give the underwriter a fuller picture of the applicants’ strength.

If you want to learn how you can lower your freight broker bond cost, chech out the video below.

To learn more about what freight broker bonds are and how do they work, visit our Freight Broker Bond page.

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