USA BMC-84 Bonds
Essential for Canadian Freight Brokers Entering the U.S. Market
What is a BMC-84 Bond?
A BMC-84 bond is a type of surety bond required by the FMCSA for freight brokers operating in the U.S. The bond guarantees that the freight broker will pay motor carriers and shippers for services
rendered. If the broker fails to fulfill their payment obligations,
the bond compensates the affected parties. Canadian companies looking to become freight brokers in the U.S. must secure this bond to obtain or maintain their license.
Benefits of a BMC-84 Bond for Canadian Freight Brokers
Regulatory Compliance
A BMC-84 bond is mandatory for Canadian freight brokers to meet FMCSA regulations and legally operate in the U.S.
Financial Protection
Protects motor carriers and shippers in case the broker defaults on payments.
Industry Credibility
Having the bond in place demonstrates a freight broker's reliability and adherence to U.S. legal standards.
Operational Continuity
Without the bond, freight brokers cannot maintain their FMCSA license, making the bond essential for ongoing operations.
How BMC-84 Bonds Work
Application Process
Canadian freight brokers apply for the bond through a U.S. surety provider. Financial documents, credit reports, and business details are typically required.
Underwriting
The surety provider evaluates the broker’s financial history and ability to meet payment obligations.
Issuance
Once approved, the bond is issued for $75,000, the amount mandated by the FMCSA.
Payment Obligations
The bond guarantees that the broker will pay motor carriers and shippers for their services.
Claims
If the broker fails to pay, the motor carrier or shipper can file a claim on the bond, which the surety will then pay out. The broker is responsible for reimbursing the surety.
Why BMC-84 Bonds are Essential for Canadian Freight Brokers
Mandatory for Licensing
Freight brokers cannot operate legally in the U.S. without this bond.
Financial Accountability
The bond ensures that freight brokers meet their financial obligations to carriers and shippers.
Builds Trust
U.S. partners and carriers are more likely to work with bonded freight brokers, knowing they are protected by the bond.
Expert Bonding Solutions for Canadian Freight Brokers
Navigating the U.S. freight brokerage market can be challenging. By offering BMC-84 bonds, you ensure your clients can enter the market with confidence and comply with FMCSA regulations.
Contact Us for BMC-84 Bond Solutions
Help your clients secure their BMC-84 bond and maintain compliance with U.S. regulations. Contact our team of surety experts for tailored bonding solutions.
FAQs about USA BMC-84 Bonds
What is the bond amount for a BMC-84 bond?
The bond amount required by the FMCSA is $75,000.
How long is a BMC-84 bond valid?
The bond is typically valid for one year and must be renewed annually to maintain the freight broker’s license.
Can Canadian brokers apply for BMC-84 bonds?
Yes, Canadian freight brokers expanding into the U.S. must apply for a BMC-84 bond to comply with U.S. regulations.
What happens if a freight broker defaults on payments?
The motor carrier or shipper can file a claim against the bond to recover unpaid amounts. The surety will
pay the claim, and the broker must reimburse the surety.
Is collateral required for a BMC-84 bond?
Collateral is not typically required, but the surety provider will assess the financial health of the broker before issuing the bond.
