A freight broker does not own trucks, so a shipper or carrier that deals with one is relying on a promise. The federal financial-security rule is what backs that promise. A broker must hold a $75,000 surety bond or trust fund before it can be registered, and the rule now sets out what happens when claims drain it. This guide covers what 49 CFR 387.307 requires, what triggers a suspension, and the other broker obligations in 49 CFR 371 that matter when you are checking a counterparty.
What the Rule Requires of a Freight Broker Bond
Section 387.307, which states that it is effective 16 January 2026, requires a broker to have a surety bond or trust fund of $75,000 in effect. FMCSA will not register a broker until it is in place, and the registration remains in effect only as long as the bond or trust fund does. The security exists to provide 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.
| Option | Form filed with FMCSA | Key detail from the rule |
|---|---|---|
| Surety bond | BMC-84 | A surety company guarantees the $75,000 limit. |
| Trust fund | BMC-85 | Assets totaling $75,000 that can be liquidated to cash within 7 calendar days: cash, irrevocable letters of credit from a federally insured depository institution, and Treasury bonds. |
Either instrument must stay in effect continuously. It can be cancelled only on 30 days' written notice to FMCSA. Replacing it with another bond or trust fund ends the old surety's liability from the replacement date, though not for damages from contracts the broker made before that date.
How much is a freight broker bond?
The required security is $75,000 (49 CFR 387.307). That is the amount of the bond or trust fund, not what a broker pays each year for the bond. The premium is set by the surety and is not stated in the federal rules.
Can a broker cancel its bond whenever it wants?
No. Cancellation requires 30 days' written notice to FMCSA, and the coverage must remain continuously in effect until terminated as the rule describes.
What Happens When Claims Draw Down the Bond
The 2026 text adds a defined sequence for when payments push the bond or trust fund below $75,000. Under paragraph (e), a surety or financial institution must notify FMCSA when it pays a claim that causes the balance to fall below $75,000. That includes payments made after the broker fails to respond within seven business days to a claim the surety finds valid, and payments on a judgment against the broker. The sequence runs as follows.
The broker can avoid suspension by showing FMCSA written evidence of one of three things. The notification was sent in error, the bond or trust fund has been restored to $75,000, or the pending claims were satisfied without using bond or trust assets. A broker whose authority is already suspended can ask FMCSA to lift the suspension on the same grounds. The rule treats a broker as financially failed or insolvent when a payment or default is not cured in this way. In that case the surety or financial institution must start cancellation of the bond or trust fund, and FMCSA publishes a notice in the FMCSA Register. A bankruptcy filing under Title 11 is expressly not treated as financial failure for these purposes.
For a carrier, this means a broker's registration can lapse because the security was exhausted, not only because it was cancelled. The rule says FMCSA publishes notices of cancellation and of cured insolvency in the FMCSA Register on its public website. It is worth checking a broker's status before accepting a load, not after a payment is late.
Other Broker Obligations Worth Knowing
- Who counts as a broker. Under 371.2, a broker is a person who, for compensation, arranges or offers to arrange transportation of property by an authorized motor carrier. Carriers, and employees or bona fide agents of carriers, are not brokers when arranging shipments they are authorized to transport and have accepted and legally bound themselves to transport.
- Records. Under 371.3, a broker must keep a record of each transaction. It shows the consignor, the originating carrier and its registration number, the bill of lading or freight bill number, the compensation received and who paid it, and the date freight charges were paid to the carrier. Records are kept for three years, and each party to a brokered transaction has the right to review the record of that transaction.
- No misrepresentation. Under 371.7, a broker may not perform or advertise brokerage service in any name other than the one on its registration. It may not represent its operations as those of a carrier. Advertising must show the broker status.
- Rebating. Under 371.9, a broker may not charge or receive compensation from a carrier where it owns or has a material beneficial interest in the shipment. The same applies where it can control the shipment through common ownership with the shipper. It also may not give anything of value to a shipper, consignor or consignee, except inexpensive promotional advertising items.
Using This When You Vet a Broker
- Confirm the broker's registration and bond or trust fund status on FMCSA's public records before accepting the first load.
- Check that the name on the rate confirmation matches the name on the registration (371.7).
- Ask for a copy of the transaction record for any load you hauled, which you are entitled to review (371.3(c)).
- Keep your own paperwork for the same three years the broker is required to keep its records.
How a surety handles a particular claim depends on the facts and the contracts. So do the position of freight forwarders and household goods brokers, and collection disputes between carriers and brokers. All of these go beyond what the rule says.
Sources
Regulation text: eCFR, 7 October 2026. General information, not legal advice.
