Whether you’re moving from driving to brokering or launching a new brokerage, FMCSA requires a $75,000 surety bond or trust, and shippers expect you to carry contingent coverage in case a carrier’s insurance doesn’t respond. We set up the bond and the insurance together.
Start a freight brokers quote or call 888-391-5981.
Common risks
- A carrier you hired causes an accident and you’re named in the lawsuit
- A load is lost and the carrier’s cargo policy denies the claim
- A shipper sues over a missed delivery or billing error
- Your authority is held up waiting for the BMC-84
Coverage most freight brokers need
| Coverage | Why it matters |
|---|---|
| BMC-84 surety bond | The $75,000 financial security FMCSA requires for property brokers and freight forwarders. |
| Contingent auto liability | Protects the brokerage when it’s pulled into a claim caused by a hired carrier. |
| Contingent cargo | Pays when the carrier’s cargo coverage doesn’t respond. |
| General liability | Office premises and operations. |
| Errors and omissions | Claims over mistakes in arranging transportation. |
California requirements & what to know
FMCSA requires every property broker and freight forwarder to keep $75,000 in financial security on file, usually as a BMC-84 surety bond. Bond pricing depends on your credit and experience. California may also require separate registration and a bond for certain motor transportation brokers, and we can place those too.
Why business owners work with Pierce
- We’re an independent agency with access to standard carriers and specialty (surplus lines) markets, so we can place risks many agents turn down.
- A licensed agent handles your account from quote to renewal.
- Certificates of insurance, additional insureds and policy changes are handled fast. Request a COI.
- Local offices in San Dimas and Monrovia.
Related: New trucking authority · Trucking · Bonds · Errors & omissions
Frequently asked questions
How much does a BMC-84 bond cost?
You pay a yearly premium that is a percentage of the $75,000 bond, based mostly on personal credit and experience. We get quotes from more than one surety.
Do brokers need cargo insurance?
You aren’t required by law, but many shippers require contingent cargo, and it protects you when a carrier’s policy doesn’t pay.