TL;DR: Freight brokers and forwarders must keep $75,000 of security on file with FMCSA. A BMC-84 surety bond costs an annual premium but ties up little cash. A BMC-85 trust requires parking the full $75,000, and since January 16, 2026 it must hold only cash, irrevocable letters of credit, or Treasury bonds, liquid within 7 days.
Why do brokers need $75,000 on file at all?
Federal law, 49 U.S.C. 13906 as amended by the MAP-21 act of 2012, requires every property broker and freight forwarder to keep $75,000 of financial responsibility on file with FMCSA. The purpose is simple: if a broker collects money from a shipper and fails to pay the carriers who hauled the loads, carriers and shippers can claim against the security. Under 49 CFR 387.307, in the version effective January 16, 2026, FMCSA will not register a broker until the full $75,000 is in effect, and registration stays valid only while it remains in effect.
What is a BMC-84 surety bond?
A BMC-84 is a surety bond. A surety company promises FMCSA it will pay valid claims up to $75,000, and you pay the surety an annual premium for that promise. You do not hand over $75,000. The premium depends on your credit and experience. If a claim is paid, the surety comes to you for reimbursement, the same way any bond works.
What is a BMC-85 trust fund?
A BMC-85 is a trust agreement with a financial institution. Instead of paying a premium, you deposit assets worth the full $75,000 into a trust that FMCSA can direct to pay claims. Since January 16, 2026, 49 CFR 387.307 tightened what counts: the trust must hold assets aggregating $75,000 that can be liquidated to cash within 7 calendar days, and acceptable assets are limited to cash, irrevocable letters of credit issued by a federally insured depository institution, and Treasury bonds. Loose arrangements built on receivables or partial funding no longer qualify.
How do the two options compare?
| Factor | BMC-84 surety bond | BMC-85 trust fund |
|---|---|---|
| Cash tied up | None beyond the premium | Full $75,000 in qualifying assets |
| Ongoing cost | Annual premium, credit-based | Trustee fees, plus lost use of the money |
| Underwriting | Credit and history reviewed | Minimal, you fund it yourself |
| After a paid claim | Surety seeks reimbursement from you | Your own money is spent |
| Asset rules since Jan 16, 2026 | Not applicable | Cash, irrevocable letters of credit, or Treasury bonds only, liquid within 7 days |
For most new brokers the bond wins, because it preserves working capital. A trust can make sense for a company that has idle cash and wants to avoid annual underwriting.
How does the filing reach FMCSA?
The surety files Form BMC-84, or the trustee institution files Form BMC-85, electronically with FMCSA. You never file it yourself. For a new broker authority, the filing must be on record within 20 days after FMCSA publishes your application in the FMCSA Register under 49 CFR 365.109T, along with your Form BOC-3 process-agent designation. You can confirm the filing on FMCSA's public Licensing and Insurance website.
What happens if the bond or trust is cancelled?
The surety or trustee must notify FMCSA before the security ends, and a broker whose $75,000 falls off file loses registration. If claims start hitting a bond, sureties can also cancel and refuse to renew. Keep disputes with carriers from turning into bond claims by paying valid invoices on time, and if you hold both carrier and broker authority, remember the two securities are separate: your BMC-91 liability filing does not satisfy the broker requirement.
Real questions freight brokers and carriers adding broker authority ask
How much does a BMC-84 bond cost per year?
The surety sets the premium based on your personal and business credit, brokerage experience, and claims history. There is no fixed federal price. Stronger credit means a lower premium. Ask for quotes from more than one surety, since pricing varies widely.
Can I switch from a BMC-85 trust to a BMC-84 bond?
Yes. Have the surety file the BMC-84 first, confirm it shows active in FMCSA's Licensing and Insurance system, then terminate the trust. Doing it in that order keeps $75,000 continuously on file so your broker registration never lapses.
What changed for BMC-85 trusts on January 16, 2026?
The rewritten 49 CFR 387.307 took effect. Trusts must now hold $75,000 in assets that can be liquidated within 7 calendar days, limited to cash, irrevocable letters of credit from federally insured institutions, and Treasury bonds. Underfunded or illiquid trusts no longer qualify.
Do carriers with broker authority need the $75,000 too?
Yes. Broker security is separate from carrier liability filings. A company holding both carrier and broker authority needs its BMC-91 or BMC-91X liability filing for the carrier side and a BMC-84 bond or BMC-85 trust for the broker side.
Who can make a claim against my broker bond?
Motor carriers you failed to pay for completed transportation, and shippers in some failure cases, can claim against the bond or trust. The surety investigates and pays valid claims up to $75,000, then seeks reimbursement from you for what it paid.
Why truckers work with Morrow
- We know the filings. Morrow arranges BMC-84 surety bonds for brokers and dual-authority carriers and confirms the filing posts before FMCSA needs it.
- New authority is our normal. First-year carriers pay the most and get declined the most. We work with markets that actually want new ventures and we tell you what the first renewal takes.
- Certificates and filings, fast. Certificates of insurance the same business day for most carriers, and federal or state filings submitted electronically so your authority is not sitting in a queue.
- We quote the whole picture. Liability, cargo, physical damage, and the endorsements shippers and brokers actually check for, priced together so nothing is missing when a load is on the line.
- Real people when something goes wrong. A claim, a lapse notice, or a lost certificate gets a person, not a portal.
Related trucking guides
Short answers to the surrounding questions truckers ask next.
- Trucking insurance at Morrow (start here)
- Insurance you need to get an MC number
- BMC-91 and BMC-91X filings, explained
- FMCSA filing timeline and the 20-day rule
- USDOT number vs MC number
- Trucking and transportation insurance overview
This guide is general information, not legal, tax, or insurance advice. Limits, forms, and deadlines change, so verify current requirements with FMCSA before you rely on them. Morrow is a brand name of Afthonea Inc. Last updated: July 2026.