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Freight Broker Insurance & Bonds

Class Insurance Agency, an affiliated office of AIC Insurance

Insurance and bonds for freight brokers

Federal law asks a freight broker for one thing: $75,000 in financial security. Shippers, carriers and now the courts expect more. Since May 2026, a broker can be sued for negligently choosing a carrier on an interstate load, which makes broker liability insurance a real need, not a nice-to-have.

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What federal law requires

  • $75,000 in security. A property broker needs a BMC-84 surety bond or a BMC-85 trust fund of $75,000, no matter how many branch offices or agents it has.[1] Your registration stays in effect only while that security is in place.[2] The bond pays claims when a broker fails to pay freight charges, and if a broker fails financially, the surety advertises for claims for 60 days.[3]
  • BOC-3. Only one BOC-3 may be on file. Name a process agent for each state where you have offices or write contracts; blanket filings by process-agent companies are allowed.[4][5][6]
  • UCR. Brokers pay the smallest-bracket fee: $46 in 2026 and $55 in 2027.[7][8]
  • Motus. FMCSA moved registration to its new Motus system. About 800,000 existing registrants must verify their identity at first login, but MC numbers and BOC-3 filing aren’t changing.[9]

The stricter bond rules in effect since January 16, 2026

FMCSA’s 2023 financial responsibility rule took full effect on January 16, 2026, after a one-year delay.[10][11] What it means for your $75,000:[1]

  • Your surety or trustee must notify FMCSA within 2 business days if a payment or finding drops your security below $75,000.
  • After FMCSA’s notice, you have 7 business days to show an error, restore the full $75,000 or prove the claims were paid another way. Otherwise your authority is suspended.
  • You get 7 business days to contest a claim before the surety can pay it as valid.
  • Trust funds may hold only cash, irrevocable letters of credit from federally insured banks and Treasury bonds, convertible to cash within 7 days. Loan and finance companies can no longer serve as BMC-85 trustees.[10]

What a broker bond costs

The yearly premium is a percentage of the $75,000, based mainly on the owner’s personal credit, experience and finances.[12] Typical market figures:

Situation Typical yearly premium
Strong credit From about 1.25%, around $938[13][14]
Typical new broker About $1,500 to $3,000[14]
Credit below about 650 Roughly 5% to 15%, or $3,750 to $11,250, and collateral may be required[12][15]

A bond isn’t insurance: you sign an indemnity agreement and must repay the surety for any claim it pays.[16] The alternative is a fully funded $75,000 BMC-85 trust. Ask us about the bond when you quote your broker insurance.

Montgomery v. Caribe Transport II: why broker liability matters now

On May 14, 2026, the Supreme Court ruled 9–0 that a negligent-hiring claim against a freight broker falls within the federal law’s safety exception, so it isn’t preempted. The case involved a crash and a broker’s choice of carrier.[17] The Court didn’t decide whether the broker was negligent, and it didn’t address intrastate loads. In a concurrence, Justice Kavanaugh noted that federal law requires insurance for trucking companies but not for brokers, and that brokers that act reasonably and use reputable carriers should be able to defend these suits.[17]

The practical result: these lawsuits now reach discovery, and your carrier-vetting file becomes evidence.[18] Insurers are raising contingent auto and professional liability premiums, adding aggregate limits and tightening language on which carriers you may use.[19] Underwriters are looking hard at vetting records.[20]

Insurance freight brokers carry

  • Contingent auto liability. Responds when the carrier’s policy doesn’t pay or isn’t enough.[21]
  • Truck broker liability. A broader, primary form that covers the broker’s own liability.[22]
  • Contingent cargo. Backs up the carrier’s cargo policy.[23] That matters because only household goods carriers are federally required to file cargo insurance.[24]
  • General liability for your office and sales activity, and errors and omissions for financial losses from brokerage mistakes.[25]

One common package from a specialty market: $1,000,000 broker auto liability, $1,000,000 general liability, $1,000,000 errors and omissions and $100,000 contingent cargo, with excess available to $5,000,000. Underwriters ask for a sample broker-carrier agreement, 5 years of loss runs and any shipper contract that requires extra coverage.[22]

Carrier vetting that protects you

  • Write down your carrier selection policy, follow it every time and train your staff on it.[18]
  • Get certificates of insurance directly from the carrier’s agent, check safety data, run fraud checks and re-vet carriers every 3 to 6 months.[26]
  • Carriers rated Unsatisfactory are barred from operating[27]. Many brokers also avoid Conditional-rated carriers, the rating the carrier in the Montgomery case had.[17]

Freight forwarders, and brokers that run their own trucks

  • Freight forwarders follow the same $75,000 rules.[3] They must file liability coverage if they do pickup or delivery, and cargo filings apply only to household goods forwarders.[28] For cargo claims, a forwarder counts as both the receiving and delivering carrier.[29]
  • Ocean freight forwarders are licensed by the Federal Maritime Commission and post $50,000 instead.[30]
  • Brokers with trucks must register separately as a motor carrier[2] and carry at least $750,000 in liability.[31] A carrier arranging loads it has accepted and is bound to haul isn’t brokering.[32] See motor carrier insurance.

What to have ready for a broker quote

  • MC number, authority date and your current bond or trust
  • Annual gross revenue, number of loads and the modes and commodities you arrange
  • Your written carrier selection policy and a sample broker-carrier agreement
  • Shipper contracts that require specific limits or additional insured wording
  • Five years of loss runs, if you’ve been insured before

Frequently asked questions

Do freight brokers need insurance?

Federal law requires only the $75,000 BMC-84 bond or BMC-85 trust. Shipper contracts and negligent-selection lawsuits make contingent auto, contingent cargo, general liability and errors and omissions coverage standard in practice.[3][19]

What does a freight broker bond cost with bad credit?

Roughly 5% to 15% of $75,000, or about $3,750 to $11,250 a year, and the surety may ask for collateral.[12][15]

What happens if my broker bond drops below $75,000?

FMCSA is notified within 2 business days. You then have 7 business days after its notice to restore the full amount or show an error, or your authority is suspended.[1]

Can a freight broker be sued over a truck crash?

Yes. Since May 14, 2026, negligent-selection claims on interstate loads aren’t preempted by federal law, although the plaintiff still has to prove negligence and causation.[17]

Does a freight forwarder need the $75,000 bond?

Yes. Freight forwarders follow the same $75,000 financial security rules as brokers.[3][28]

Get a freight broker insurance quote

Call 360-450-2211 or start your quote. We quote trucking operations in the 48 contiguous states from our office in Vancouver, Washington, Monday to Friday, 7 a.m. to 5 p.m. Pacific.


Related coverage

Sources

General information only, checked September 2026. Rules change; confirm with the agency that issues your permits. Coverage availability, terms and filings depend on underwriting and the policy issued; a quote request does not bind insurance.