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InstituteTransportationBrokers and brokering freight - Motor CarrierFocus AreaOperating AuthorityFleet OperationsEnglishAnalysisIn Depth Sub Topics (Level 4)USA

Required financial responsibility

['Operating Authority']
Required financial responsibility
  • A surety bond or trust fund agreement must be procured by all brokers and filed with the FMCSA.

All brokers must obtain and file with the Federal Motor Carrier Safety Administration (FMCSA) a surety bond or trust fund agreement in the amount of $75,000 to comply with the FMCSA’s financial security requirements.

The surety bond or trust fund ensures the financial responsibility of the broker by providing for payments to shippers or motor carriers if the broker fails to carry out its contracts, agreements, or arrangements for supplying transportation by authorized motor carriers. The FMCSA will not issue a property broker license until a surety bond or trust fund for the full limits of liability is in effect.

Evidence of a surety bond must be filed using the FMCSA’s prescribed Form BMC-84. Evidence of a trust fund with a financial institution must be filed using the FMCSA’s prescribed Form BMC-85.

The broker license remains in effect only as long as a surety bond or trust fund in the required amount remains in effect.

:
operating-authority
FOUNDATIONAL LEARNING
InstituteFleet OperationsAnalysisFreight forwarderTransportationPassenger carrier authorityMotorcoach operating authorityOperating AuthorityBrokers and brokering freight - Motor CarrierEnglishFor-Hire Carrier AuthorityFocus AreaCompliance and Exceptions (Level 2)USA

What types of authority are required?

InstituteFederal Motor Carrier Safety Administration (FMCSA), DOTInsurance and risk management - Motor CarrierTransportationFinancial ResponsibilityFocus AreaFleet OperationsEnglishAnalysisIn Depth Sub Topics (Level 4)Business planning - Motor CarrierUSA

Required financial responsibility

InstituteTransportationBrokers and brokering freight - Motor CarrierFocus AreaOperating AuthorityFleet OperationsEnglishAnalysisIn Depth Sub Topics (Level 4)USA

Required financial responsibility

Required financial responsibility

InstituteTransportationBrokers and brokering freight - Motor CarrierFocus AreaOperating AuthorityFleet OperationsEnglishAnalysisIn Depth Sub Topics (Level 4)USA
['Operating Authority']
Required financial responsibility
  • A surety bond or trust fund agreement must be procured by all brokers and filed with the FMCSA.

All brokers must obtain and file with the Federal Motor Carrier Safety Administration (FMCSA) a surety bond or trust fund agreement in the amount of $75,000 to comply with the FMCSA’s financial security requirements.

The surety bond or trust fund ensures the financial responsibility of the broker by providing for payments to shippers or motor carriers if the broker fails to carry out its contracts, agreements, or arrangements for supplying transportation by authorized motor carriers. The FMCSA will not issue a property broker license until a surety bond or trust fund for the full limits of liability is in effect.

Evidence of a surety bond must be filed using the FMCSA’s prescribed Form BMC-84. Evidence of a trust fund with a financial institution must be filed using the FMCSA’s prescribed Form BMC-85.

The broker license remains in effect only as long as a surety bond or trust fund in the required amount remains in effect.

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