What is the FMCSA $75,000 Freight Broker Surety Bond?

The Federal Motor Carrier Safety Administration (FMCSA) requires all licensed freight brokers to maintain a $75,000 surety bond (BMC-84) or trust fund (BMC-85) as a condition of their operating authority. This bond protects shippers and carriers if your brokerage fails to pay for services rendered. Without it, the FMCSA will revoke your broker authority.

Is Contingent Cargo Insurance required by law?

No — it is not federally mandated. However, it is strongly recommended because you are legally liable for cargo loss if the motor carrier's primary insurance is insufficient or denies the claim. Many shippers now require brokers to carry contingent cargo insurance as a contract condition.

How much does Freight Brokerage Insurance cost in Oregon?

The $75,000 surety bond premium ranges from $375–$7,500 per year depending on your credit score and business history. A full brokerage insurance package (bond + contingent cargo + E&O + general liability) typically runs $2,000–$8,000 per year for a small to mid-size broker. We provide a detailed quote after reviewing your specific operation.

What is the difference between a Freight Broker Bond and Freight Broker Insurance?

A surety bond is a financial guarantee to third parties (shippers and carriers) that you will fulfill your obligations. It protects them, not you. Freight broker insurance (contingent cargo, E&O, general liability) protects your business from losses and lawsuits. You need both.

Does Oregon have additional requirements for intrastate freight brokers?

Yes. For intrastate operations in Oregon, ODOT's Commerce and Compliance Division requires proof of insurance with minimum cargo insurance of $10,000 and auto liability of $750,000 per accident. If you broker freight that stays entirely within Oregon, you must meet both FMCSA federal and ODOT state requirements.

What happens if a carrier I booked has a cargo claim denied?

Without contingent cargo insurance, you are exposed to the full value of the shipper's loss. The shipper will typically pursue the broker when the carrier's policy fails to pay. Contingent cargo insurance steps in as a secondary layer to cover these situations, up to your policy limit.

Can you cover a freight brokerage that also does some asset-based trucking?

Yes. We can build a package that covers both your brokerage operations and your owned/leased trucking assets. The coverage structures are different — brokerage uses contingent policies while trucking uses primary commercial auto and cargo — and we coordinate both to eliminate gaps.

Freight Brokerage Insurance

Surety Bond · Contingent Cargo · E&O · General Liability

Freight Brokerage Insurance

Surety Bond · Contingent Cargo · E&O · General Liability — Complete Coverage for Oregon Freight Brokers

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Freight Broker Insurance Built for Oregon Logistics

Oregon freight brokers operate at the intersection of shippers, carriers, and federal regulation. The FMCSA requires every licensed broker to maintain a $75,000 surety bond — but that bond protects shippers and carriers, not you. Your business needs its own protection: contingent cargo insurance for when a carrier's policy fails, Errors & Omissions coverage for professional liability, and general liability for your office operations.

Gerald Ross Agency has been protecting Oregon transportation businesses since 1935. We build complete freight broker insurance packages — surety bond, contingent cargo, E&O, and general liability — coordinated through a single independent agency that shops 50+ carriers for the best price and protection.

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Required & Recommended Coverages for Freight Brokers

Freight Broker Surety Bond (BMC-84/BMC-85)

FMCSA mandatory: $75,000

A federally mandated financial guarantee that protects shippers and carriers if your brokerage fails to pay. Required by the FMCSA for all licensed freight brokers. The BMC-84 is a surety bond; the BMC-85 is a trust fund alternative. Premium is 1%–10% of the bond amount based on your credit profile.

Contingent Cargo Insurance

Strongly recommended: up to $500,000

Activates when a motor carrier's primary cargo insurance is insufficient or denies a claim. Without it, you are personally liable for the shipper's cargo loss. This is the most common gap in freight broker insurance programs.

Contingent Auto Liability

Strongly recommended

Covers your liability if a contracted carrier's auto liability policy fails to pay a claim arising from an accident. Protects you from lawsuits alleging you negligently selected an uninsured or underinsured carrier.

Errors & Omissions (E&O) Insurance

Recommended: $1,000,000

Covers claims that your brokerage services caused financial harm through negligence, errors, or omissions — such as booking the wrong carrier, missing a delivery deadline, or providing incorrect freight documentation.

Commercial General Liability

Recommended: $1,000,000 per occurrence

Covers bodily injury and property damage at your brokerage office, including slip-and-fall claims from visitors, damage to client property on your premises, and personal injury claims.

Cyber Liability Insurance

Recommended for digital brokers

Freight brokers handle sensitive shipper and carrier data, payment information, and load tracking systems. A data breach or ransomware attack can shut down your operation. Cyber liability covers notification costs, legal fees, and business interruption.

Oregon Freight Broker Insurance Cost Guide

Coverage	Typical Annual Cost	Key Rating Factor
$75,000 Surety Bond (BMC-84)	$375 – $7,500	Personal credit score
Contingent Cargo Insurance	$800 – $2,500	Cargo value & freight types
Errors & Omissions (E&O)	$600 – $2,000	Annual revenue & claims history
Commercial General Liability	$500 – $1,500	Office size & employee count
Full Package (all above)	$2,000 – $8,000+	Business size & experience

Rates are estimates only. Actual premiums depend on your specific operation, credit profile, and claims history.

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Freight Brokerage Insurance Quote Request

A local agent will review your brokerage operation and contact you within one business day with coverage options and pricing.

Why Oregon Freight Brokers Choose Gerald Ross Agency

Federal Bond Specialists

We handle the mandatory $75,000 BMC-84/BMC-85 Surety Bond required by the FMCSA and pair it with contingent cargo, E&O, and liability coverages in one coordinated package.

Contingent Cargo Experts

When a motor carrier's primary cargo policy denies a claim, your contingent cargo policy steps in. We build limits up to $500,000 to match your highest-value shipments.

E&O Coverage Included

Errors & Omissions insurance protects you from claims of negligence in your brokerage services — a critical gap many brokers overlook until it's too late.

Oregon & Interstate Coverage

We understand both federal FMCSA requirements and Oregon ODOT intrastate minimums. If your freight moves across state lines or stays within Oregon, we have you covered.

Independent Agency Advantage

As an independent agency since 1935, we shop 50+ carriers to find the best combination of price and protection — not just the first policy that qualifies.

Same-Day Bond Filing

FMCSA bond filings processed the same business day your bond is issued — so you never miss a licensing deadline or lose your operating authority.

Freight Broker Insurance FAQ

Related Coverage

Trucking Insurance Commercial Auto General Liability Cargo & Inland Marine Errors & Omissions Surety Bonds Business Insurance

Get In Touch

Ready to protect your freight brokerage? Call us at (541) 469-3144, email [email protected], or visit our office at 97 Beach Loop Dr, Brookings, OR 97415. We have been protecting Oregon businesses since 1935 and are ready to build the right freight broker package for your operation.

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