Texas Freight Broker Bond / ICC Bond (Form BMC-84)
AmeriPro Surety Bonds | 844-589-9732
Texas Freight Brokers
The freight brokerage industry is both federally mandated and regulated.
As such, Texas freight brokers, as also freight brokers nationwide, come under the authority of the Federal Motor Carrier Safety Adminstration (FMCSA).
While this entity is a federal institution, freight brokers in Texas should also be both familiar and comfortable with any rules or laws which are particular to the state.
Texas Freight Broker Bond / ICC Bond: Amount
Freight brokers who operate in Texas are required to purchase a $75,000 Texas freight broker bond.
Texas Freight Broker Bond: Purpose of this Surety Bond
Beyond being a prerequisite for licensing (the FMCSA will not issue a freight broker license without the bond), the Texas freight broker bond is a financial guarantee that the licensee will abide by all rules and regulations applicable to being a freight broker in the state.
The bond protects others — consumers — from acts of fraud, willful negligence, or other criminal activity committed by a freight broker, and any employees, in the performance of their duties.
Importantly, the Texas freight broker bond protects others from illegal acts committed by a freight broker; it is not a protection for the freight brokerage at all.
Texas Freight Broker Bond: Duration
The Texas freight broker bond is issued for one year.
The bond’s duration must run concurrent with the freight broker license so as to prevent any lapse in coverage, which could potentially cause a license suspension.
Texas Freight Broker Bond: Premium
While the Texas freight broker bond is $75,000, the premium will be a small percentage of the bond, ideally.
The premium for a freight broker bond may be as low as $1500, annually.
The premium amount of the bond will almost entirely be determined by an applicant’s credit score.
Those who have lower credit, depending on the circumstances, may pay substantially more for a Texas freight broker bond.
In those cases, please be aware of two things:
- AmeriPro Surety Bonds will in all likelihood be able to get you bonded;
- However, you may be required to place a significant amount down;
- Additionally, there may be large monthly payments for a period of several months.
In cases where premiums are inordinately high due to poor credit, AmeriPro Surety Bonds is able to offer premium surety bond financing.
Obtaining the Freight Broker Licensed
Applicants for a Texas freight broker license will need to complete the following:
- The first part involves the initial application where the applicant applies for an operating authority.
- There is a $300 nonrefundable application fee;
- The second stage, once the application is approved, is the where the grant letter and MC/FF (Motor Carrier/ Freight forwarder) number are issued to the applicant;
- The third stage involves a 10 day “protest period” where the applicant’s authority is published in the FMCSA register. If there any objections, persons are permitted to contest the granting of the license. Should no protest take place then the application moves forward;
- The fourth stage involves obtaining the $75,000 surety bond for ICC brokers; however, at any point after the second stage applicants should contact AmeriPro Surety Bonds to begin the bonding process;
- The fifth stage involves obtaining an agent for service of process for every state in which an ICC conducts business. This, too, can be begun after the second stage.’
- The sixth and final stage is the issuance of the license certificate which authorizes operation. After this final stage has been completed –via notification by mail — than an ICC may operate.
About AmeriPro Surety Bonds:
AmeriPro Surety Bonds provides license and permit, contractor, court, and fiduciary bonds throughout Texas.
We also provide surety bonds nationwide!
Call AmeriPro Surety Bonds for the $75,000 Texas freight broker bond today.