Trucking and transportation

Freight broker insurance

For property brokers who arrange truckload and LTL freight but do not haul it: the $75,000 BMC-84 bond, contingent auto and cargo cover, what it costs and what underwriters ask for.

Independent brokerage: we compare several insurers
Licensed agents review every application
No cost and no obligation to buy

Get freight broker insurance quotes

What similar businesses pay

BMC-84 surety bond: $750–$9,000 a year
Commercial auto: About $846 a month
General liability: About $146 a month

Published benchmarks, not quotes. Your price depends on underwriting.

Cost

What freight broker insurance costs

$750–$9,000 a year

BMC-84 surety bond

JW Surety Bonds range for the $75,000 bond, 1% to 12% of the amount, accessed October 2026

About $846 a month

Commercial auto

Insureon median for freight brokers and forwarders, updated June 2025

About $146 a month

General liability

Insureon median for freight brokers, $1 million/$2 million limits, updated June 2025

About $650 a month

Workers’ comp

Insureon median for freight brokerage and other trucking businesses, updated June 2025

Your first required cost is the BMC-84 bond, priced as a share of the $75,000 bond amount. Lance Surety Bonds estimates 1.25% to 3%, or $938 to $2,250 a year, for owners with credit above 700, rising to 5% to 12% below 650. Insureon’s medians for freight brokers and forwarders who quote through it are about $10,157 a year for commercial auto, $1,752 for general liability and $7,795 for workers’ comp. Those are medians across the policies its customers buy, not quotes for contingent auto or cargo alone, which specialty markets price on your revenue, commodities and contract limits. Insureon says the main drivers are the policies you buy, your revenue, headcount and claims history.

What moves your price

Your personal credit and financials, which set the BMC-84 bond rate
Annual gross revenue and number of loads brokered
Commodities you broker, especially electronics, food, metals and other theft targets
The contingent auto and cargo limits your shipper contracts require
Legal liability or broad form contingent cargo
How you vet, document and monitor carriers
Prior cargo, auto and bond claims

Risks

The risks insurers price for

Sued over a carrier’s crash

An injured driver sues you for choosing an unsafe carrier. On May 14, 2026, in Montgomery v. Caribe Transport II, the Supreme Court ruled 9–0 that federal law does not block state negligent hiring claims against brokers. The suit alleged the carrier held a conditional federal safety rating when C.H. Robinson hired it.

The carrier’s cargo insurer will not pay

A load is damaged or stolen and the carrier’s cargo policy will not pay. Falvey lists cancellation, low limits and exclusions as the usual reasons, and the shipper then turns to you for the value of the freight.

A load tendered to an impostor

Thieves pose as a legitimate carrier or redirect a load after pickup. Verisk CargoNet put 2025 cargo theft losses near $725 million, with an average of $273,990 per theft, and expects deception groups to keep misdirecting loads tendered to legitimate carriers.

An unpaid carrier claims on your bond

If you do not pay a carrier or shipper, they can claim on your BMC-84. A payout that drops the bond below $75,000 can lead FMCSA to suspend your authority within 7 business days, and the surety will look to you for repayment.

A costly mistake in the office

A misquoted rate or a delivery instruction that never reaches the driver costs a shipper money. TIA cites misquoting rates and failing to relay critical shipment details as broker errors that errors and omissions insurance covers.

Coverage

Coverage to consider

BMC-84 surety bond

The $75,000 bond FMCSA requires before it registers you. It pays shippers and carriers if you fail to carry out your contracts, and JW Surety notes you must repay the surety for any claim it pays.

Contingent auto liability

Responds when you are named in a lawsuit after a crash involving a carrier you hired, paying for your defense and any settlement up to the limit. PFA notes limits of up to $1 million per occurrence, with defense usually outside the limit.

How commercial auto works →

Contingent cargo

Pays when the carrier’s cargo insurance does not. Legal liability forms cover your legal liability and defense and are typically cheaper; broad forms pay valid claims the carrier or its insurer refuses without a lawsuit, which PFA says helps protect shipper relationships.

Truck broker liability

A primary alternative to contingent auto offered by some transportation markets. It covers bodily injury and property damage claims from a brokered truck accident, with per-accident limits and defense outside the limit, per TransInsurers.

General liability

Covers injuries and property damage that are not cargo or driving claims, such as a visitor hurt at your office or a dock worker injured while a load is unloaded. Shipper contracts commonly require it.

How general liability works →

Errors and omissions

Covers claims that your mistake, such as a misquoted rate or a missed instruction, cost a client money, a financial loss that cargo and auto policies are not designed to cover.

How professional liability works →

Cyber

Helps with a hacked email account, a breached TMS or a payment sent to a fraudster posing as a carrier. Ask whether social engineering fraud is included or needs an endorsement.

How cyber insurance works →

Workers’ compensation

Covers employees hurt on the job. Insureon notes most businesses with employees must carry it, and California and New York require it from the first employee.

How workers’ compensation works →

Rules

Requirements and filings

Federal law requires a $75,000 bond or trust, not insurance. Contingent auto, contingent cargo and general liability are set by your shipper contracts, and many shippers will not tender freight without them.

Requirement	Applies to	What it means
Broker operating authority	Anyone arranging interstate truck transportation for compensation	Apply to FMCSA for an MC number; the fee is $300, non-refundable, and processing takes about 4–6 weeks, per FMCSA.
BMC-84 bond or BMC-85 trust	All property and household goods brokers	$75,000 under 49 CFR 387.307(a). A trust must hold cash, irrevocable letters of credit or Treasury bonds that can be liquidated within 7 calendar days.
Immediate suspension	Brokers whose bond or trust is drawn below $75,000	Since January 16, 2026, FMCSA suspends authority if the security is not replenished within 7 business days of its notice, under its 2026 financial responsibility rule.
Bond cancellation notice	Your surety or trustee	30 days’ written notice to FMCSA on Form BMC-36 or BMC-85, under 49 CFR 387.307(d).
BOC-3 process agent	All brokers	Designates process agents; FMCSA says brokers may name themselves in the state where they write contracts.
Unified Carrier Registration	Interstate brokers that are not also motor carriers	Flat $55 a year for 2027, per the Minnesota DOT; registration opened October 1, 2026.
Transaction records	All brokers	Keep a record of each load for three years, and let each party review it, under 49 CFR 371.3.
Unauthorized brokering	Anyone brokering without registration and security	49 U.S.C. 14916 allows a civil penalty of up to $10,000 per violation and liability for all valid claims, extending to officers personally.

Compare freight broker insurance options.

One application, quotes from several insurers, reviewed by a licensed agent. Start with your email and finish later if you need to.

Pay less

How to lower the cost

Vet and document each carrier’s authority, insurance and safety record before you tender; Montgomery puts carrier selection at the center of crash suits.
Clean up personal credit before you apply for the bond: Lance estimates 1.25% to 3% above 700 and 5% to 12% below 650.
Use a BMC-84 bond rather than a trust unless you have spare capital; JW Surety notes a BMC-85 ties up the full $75,000.
Buy legal liability contingent cargo if your contracts allow it, since PFA says it is typically cheaper than broad form.
Bundle general liability with office property in a business owner’s policy, which Insureon says can save money.
Compare quotes before you sign a large shipper contract; Florin is an independent broker that compares options from several insurers.

Before you start

What underwriters ask for

MC and USDOT numbers and date your authority was granted
Gross revenue for the last year and a projection for the next
Number of loads and the modes you broker
Commodities and your highest single-load value
Written carrier selection and monitoring procedures
Sample shipper and broker-carrier agreements with the limits they require
Loss runs from current and prior insurers
Whether you also hold motor carrier authority or own any trucks
Owner credit and business financials for the bond

Common questions

Freight broker insurance: questions

Is the BMC-84 bond the same as insurance?

No. It guarantees that carriers and shippers get paid if you fail to carry out your contracts, and the surety will seek repayment from you for any claim it pays.

What is the difference between a BMC-84 and a BMC-85?

A BMC-84 is a surety bond you buy for an annual premium. A BMC-85 is a $75,000 trust that, under 49 CFR 387.307(b), must hold cash, irrevocable letters of credit or Treasury bonds that can be liquidated within 7 calendar days.

Does FMCSA require contingent auto or contingent cargo insurance?

No. FMCSA’s broker registration requires the $75,000 bond or trust and a BOC-3. Contingent auto, contingent cargo and general liability are usually required by shipper contracts instead.

Can a freight broker be sued for a carrier’s accident?

Yes. In Montgomery v. Caribe Transport II, decided May 14, 2026, the Supreme Court held unanimously that federal law does not bar state negligent hiring claims against brokers over the carriers they choose.

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

Since January 16, 2026, your surety must report the drawdown and FMCSA will suspend your authority unless the bond is replenished within 7 business days of its notice.

When does contingent cargo pay?

Only after the carrier’s own cargo coverage fails, for example because the policy was canceled, the limit was too low or the loss was excluded. If the carrier’s insurer pays, your policy does not respond.

Do freight brokers need UCR registration?

Yes, if you arrange interstate or international shipments. Brokers that are not also motor carriers pay a flat $55 for the 2027 registration year, per the Minnesota DOT.

Get covered.

Tell us about your business once. We compare options and a licensed agent follows up, usually the same day.

Sources (15)

Figures are published third-party estimates, not quotes. Coverage depends on policy terms and underwriting, and rules vary by state. Updated October 2026.