Do I need cargo insurance for a broker MC?

The 49 CFR §387.301 broker financial-responsibility regulation requires either a surety bond on Form BMC-84 or a trust fund on Form BMC-85, both at the $75,000 amount established by the FAST Act. The bond/trust protects shippers and motor carriers from broker non-payment events: if the broker fails to pay a contracted carrier for transportation services, the carrier can claim against the bond up to the $75,000 limit.

BMC-84 / BMC-85 is functionally different from cargo insurance. The bond protects the contractual relationship (broker pays carrier); cargo insurance would protect the physical freight (cargo damaged in transit). Cargo damage is the carrier's liability under federal motor-carrier law (§14706 Carmack Amendment), so the broker's bond is not the right instrument for cargo claims.

Some brokers carry contingent cargo insurance as a layered protection. Contingent cargo coverage applies if the underlying motor carrier's cargo insurance fails to pay (insolvency, coverage exclusion, etc.) and the shipper looks to the broker for recovery. The broker's contingent policy then covers the shortfall. This is voluntary contractual protection, not a §387.301 requirement.

For shippers vetting brokers, the §387.301 bond is the visible federal requirement and FMCSA's records (Motus public search) show whether BMC-84 or BMC-85 is on file. Sophisticated shippers may also ask about contingent cargo coverage as part of broker due diligence, but it is a contract negotiation point, not a federal compliance check. The broker's reputation and payment history typically matter more than insurance details.