BMC-84 vs. BMC 85?

[Unregistered]

Can you tell me what the difference is between applying for a BMC-84 (Freight Broker Bond) and filing for a BMC-85? Is the BMC-85 the same thing as the Freight Broker Bond?

[Admin]

The BMC-84 is the surety bond; with this option you will pay an annual premium (and collateral if your agent doesn't have the proper markets).

Surety Bond (BMC-84) Advantages:

• Free up capital to run your business
• The surety will process a potential claim.

Surety Bond (BMC-84) Disadvantages:

• The difficulty of obtaining one.
• If there ever is a claim on the bond, there isn't a surety in America that will bond you again.

The BMC-85 is when you post the full amount to the goverment. They hold your money in an account, which will be pulled from in the event of a claim. T

BMC-85 Advantages:

• Anyone can obtain it, regardless of how new the business is or personal credit of the owners.

BMC-85 Disadvantages:

• In the event of a claim, the ICC has control over $10,000 of your money. What do you think the chances of them trying to decide how valid of claim it is rather then just ending the problem by spending your money?
• It ties up capital that could be used to run your company

What it comes down to is that if you can obtain the bond, I would highly recommend doing so. If you can not, post the money with the BMC-85 and try again the following year (if you meet the qualifications)

Be careful when applying for any type of surety bond (especially this one!). Bonding companies do not like to get the same application from different agencies. In fact, when they do they will often tell the client to take a hike. It is imperative to find a good agent that will do your shopping for you.

As of right now there is only one surety I know of that will write this bond without collateral.

If anyone knows a link to obtain the BMC-85 application, please post it below.

[don j]

bmc-85s must be filed thru a financial institution authorized by the fmcsa (ICC) to administer these trusts. do not make the mistake of submitting a letter of credit or 10k directly to them. they cannot and will not be able to determine the validity of a claim. bmc-85s can be obtained without submitting the full amount initially. 1st Security Financial has a variety of programs designed for both the new property broker and those who have had their bmc-84 bond cancelled or not renewed because the bonding company no longer desires this type of business. In fact, the property broker trust fund(bmc-85) has become the preferred way for brokers to stay in compliance because in essence they are self insured.

[heavy goods]

i always thought the bmc-85 was in the form of a cashiers check. i guess you learn something new everyday!

i am having troubles obtaining the bond due tot my credit, but i will be sure to obtain the bond again when i can, i don't like the idea of being self insured...

[tsfg]

If you need help with a BMC-85 we can help.
(EDITED COMPANY INFO)