Freight Brokers are issued a 6 digit Motor Carrier (MC) number by the Federal Motor Carrier Safety Administration (FMCSA) and are required to have a $10,000 bond in order to legally operate as a transportation broker.  There are 2 types of bonds which satisfy the $10,000 bond requirement for freight brokers:

A Surety bond is like an insurance policy and costs approximately $800 to $3,000 per year, so for example over 10 years the customer would pay between $8,000 to $30,000.  The customer would not get any of the money back.

A Trust bond is kind of like a savings account.  The risk pays an upfront fee of approximately $1,100 to 1,200, then pays $250 per month for 40 months until there is $10,000 in an account.  The customer would not have to pay anything after this.  Once the business closes, the customer gets the $10,000 back.

Most Freight Brokers also choose to purchase Contingent Cargo Insurance. 

Freight Forwarders are issued a 4 digit Freight Forwarder (FF) number by the FMCSA and are required to have Contingent Cargo insurance.

We are able to assist you in fulfilling all of these requirements, as well as complete any required filings. We offer the required $10,000 bond and the optional Contingent Cargo insurance for Freight Brokers, and the required Contingent Cargo insurance for Freight Forwarders.  In most cases we are able to offer Contingent Cargo Insurance for less than $100 per month.  Rates for Contingent Cargo Insurance coverage are primarily based on your yearly revenue.  For new businesses, rates are based on your projected revenue.