Fast Trucking ComplianceCompliance FAQ
Do freight brokers need BIPD insurance?
No. Brokers do not haul freight, so they do not buy BIPD (bodily-injury and property-damage) liability insurance the way motor carriers do. What brokers must post is the $75,000 broker surety bond on form BMC-84, or alternatively a BMC-85 trust fund, under 49 USC §13906 and 49 CFR §387.307. The bond protects shippers and motor carriers against unpaid invoices when the broker fails. It is filed electronically by the surety company through FMCSA. Brokers also typically carry contingent cargo and contingent auto-liability policies that activate only if the actual hauling carrier's primary insurance fails - these are smart business protection but not federally mandated. Property brokers operating both as broker and motor carrier (dual authority) need both the broker bond and BIPD on their carrier side, with separate underwriting for each operation.
Why it matters
The $75,000 BMC-84 bond is the bigger filing decision than the federal $300 broker authority fee. Surety underwriters look at personal credit, business history, and sometimes require collateral up to 50% of the bond face value for first-time principals. Carriers transitioning to brokerage from a motor-carrier background generally have an easier time because their FMCSA history is on file and credit patterns are visible.
Contingent cargo coverage runs $400–$800 per year for typical small brokers and covers the gap between what a hauling carrier's primary cargo insurance pays and what the broker is on the hook for under the bill of lading. Contingent auto liability does the same for the truck portion. Most shippers ask for both before tendering loads.
Brokers also need a BOC-3 process-agent filing in every state - same as carriers - under 49 CFR §366.4.