A US Property Brokers Bond (also known as a Freight Broker Bond or BMC-84 Bond) is a $75,000 surety bond required by the U.S. Federal Motor Carrier Safety Administration (FMCSA). This bond is mandatory for freight forwarders and load brokers who arrange the transportation of goods in or out of the United States.
The bond serves two key purposes:
Protects Shippers and Carriers: It ensures that carriers and shippers are compensated if a freight broker fails to pay for services or violates FMCSA regulations.
Ensures Compliance: It guarantees that freight brokers operate ethically and in accordance with U.S. laws.
Without a US Property Brokers Bond, you cannot legally broker freight in the United States.
A freight broker bond is a three-party agreement:
If the broker fails to pay a carrier or breaks FMCSA rules, the harmed party can file a claim. If the surety pays out, the broker must repay the surety.
If your business involves any of the following, you are required by law to have a US Property Brokers Bond:
Freight Forwarders: Companies that organize and manage shipments for clients.
Load Brokers: Businesses that connect shippers with carriers to transport goods.
Cross-Border Operations: Companies that broker freight between Canada and the United States.
This bond is a non-negotiable requirement for obtaining and maintaining your FMCSA freight broker authority.
Stay FMCSA Compliant
The FMCSA requires all freight brokers and forwarders operating in the U.S. to have a $75,000 bond. Failure to comply can result in fines, penalties, or the suspension of your brokerage authority.
Protect Your Business
The bond safeguards your business from financial losses due to claims or disputes with shippers and carriers.
Build Trust with Clients
Having a bond demonstrates your commitment to ethical business practices and compliance with U.S. regulations, helping you build trust with clients and partners.
Avoid Costly Disruptions
Operating without a bond can lead to serious consequences, including the inability to conduct business in the U.S. Securing your bond ensures uninterrupted operations.
At Keystone Insurance, we make it easy for Canadian freight forwarders and load brokers to secure their US Property Brokers Bond. Here’s how it works:
Contact Us
Reach out to our team to discuss your bonding needs. We’ll guide you through the process and answer any questions you may have.
Submit Your Application
Provide the necessary details about your business, including your FMCSA registration number and financial information.
Get Bonded Quickly
Once approved, we’ll issue your bond and ensure it’s filed with the FMCSA, so you can continue operating without delay.
Stay Compliant
We’ll help you renew your bond annually to ensure ongoing compliance with U.S. regulations.
Expertise in Cross-Border Insurance
As a trusted insurance broker in Manitoba, we understand the unique challenges faced by Canadian businesses operating in the U.S.
Fast and Reliable Service
We work with top-rated surety providers to ensure you get your bond quickly and efficiently.
Personalized Support
Our team is here to guide you through every step of the process, from application to renewal.
Competitive Rates
We’ll help you secure your bond at the best possible price, saving you money while ensuring compliance.
Operating as a freight forwarder or load broker in the U.S. without a bond is not only illegal but also puts your business at risk. Let Keystone Insurance help you stay compliant and protect your operations with a US Property Brokers Bond.
Ready to Get Started?
Contact Keystone Insurance today to learn more about US Property Brokers Bonds and how we can help you secure the coverage you need.