How to File a Surety Bond Claim Against a Freight Broker
Freight brokers are federally required to maintain a $75,000 surety bond. If a broker fails to pay a legitimate carrier claim, you can file a claim against this bond directly with the bonding company. A successful bond claim pays you from the bond — not from the broker — which is why it’s a viable option even when the broker is unresponsive or insolvent.
What Is a Freight Broker Surety Bond?
Under 49 U.S.C. § 13906, freight brokers operating in interstate commerce must maintain a surety bond (BMC-84 form) or trust fund (BMC-85 form) of at least $75,000. This requirement protects carriers and shippers from broker non-payment.
The bond works like insurance: the bonding company guarantees payment of valid claims against the broker, up to the bond amount. If the broker fails to pay you and your claim is valid, you can recover from the bond.
Key facts:
- Bond amount: $75,000 minimum (federal requirement since 2013)
- Bond purpose: Protect carriers and shippers from broker payment failure
- Claim window: Typically 18 months from the date of service (varies by bond)
- Priority: Multiple claimants may share the $75,000 if claims exceed the bond amount
Step 1: Find the Bonding Company
The bonding company information is in the broker’s FMCSA SAFER record.
- Go to safer.fmcsa.dot.gov
- Look up the broker by MC number
- Find the “Insurance / Financial Responsibility” section
- Note the surety company name and the bond form number (BMC-84)
Common freight broker bonding companies include RLI Insurance, Protective Insurance, Avalon Risk Management, and others.
Once you have the bonding company name, search for their claims contact information on their website or call their main line and ask for the surety claims department.
Step 2: Confirm You Have a Valid Claim
Before filing, verify:
- The broker has operating broker authority with the FMCSA
- You have a documented, legitimate unpaid invoice
- You have made reasonable attempts to collect directly from the broker (the bonding company will likely ask)
- The claim is within the bond’s claim window (typically 18 months from invoice date)
A surety bond claim is not a first resort — it’s appropriate when direct collection has failed after escalation attempts.
Step 3: Contact the Bonding Company
Call or email the surety’s claims department. Tell them:
- You have a claim against a broker insured under a BMC-84 bond
- The broker’s name and MC number
- The approximate amount of the claim
- That you are a licensed motor carrier who performed services under a rate confirmation
Ask for:
- Their claims process and required documentation
- Any claim forms you need to complete
- The specific time limit for your claim
Different bonding companies have different processes. Some use online claim forms; others require written claims by certified mail.
Step 4: Prepare Your Claim Documentation
A surety bond claim for unpaid freight or accessorial charges typically requires:
Required:
- Claim form (if required by the bonding company)
- Copy of the signed rate confirmation
- Copy of your invoice(s)
- Proof of delivery (signed BOL or POD)
- Documentation of your payment demands (copies of emails, follow-up correspondence)
- Broker’s non-response or dispute response
For accessorial claims (detention, TONU, etc.):
- GPS/telematics report showing timestamps
- Rate confirmation pages showing accessorial coverage and rates
- Your calculation showing the amount owed
For all claims:
- Your motor carrier authority information (MC number, USDOT number)
Step 5: Submit the Claim
Submit the complete claim package to the bonding company by their specified method. If they accept email submissions, get a delivery confirmation. If you’re mailing, use certified mail with return receipt.
Keep copies of everything submitted.
What Happens After You File
The bonding company investigates. They’ll contact the broker for their response to the claim. The investigation timeline varies — typically 30–90 days.
Possible outcomes:
Claim approved: The bonding company pays you from the bond, up to the bond amount.
Claim denied: The bonding company determines the claim isn’t valid under the bond terms (for example, if the RC didn’t cover the claimed accessorial, or if the claim is outside the time window). You can appeal or pursue other remedies.
Partial payment: If multiple carriers have claims against the same broker and the total exceeds $75,000, the bond amount is distributed proportionally.
Broker resolves directly: When a broker learns a surety bond claim has been filed, they often resolve the underlying claim directly to prevent the bond company from paying out — which typically increases their premiums.
Important Limitations
$75,000 total bond. If a broker has defrauded multiple carriers, the total bond may not cover everyone. File as early as possible — claims are typically paid in filing order.
Bond doesn’t cover everything. The bond covers claims for legitimate services rendered. It doesn’t typically cover claims for consequential damages, cargo claims, or disputes where the broker has a legitimate counter-argument.
Time limits apply. Most bonds require claims within 18 months of the service date. Don’t wait.
Related Articles
- What to Do When a Freight Broker Doesn’t Pay
- How to File an FMCSA Complaint Against a Freight Broker
- How to Check if a Freight Broker Is Licensed and Bonded
- TIA Arbitration for Carriers: How It Works
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