Spring is one of the busiest seasons for general contractors in Indiana. From Indianapolis to Fort Wayne, construction crews are ramping up projects, supply chains are moving fast, and the pressure to coordinate materials and logistics is at an all-time high. Some Indiana general contractors are taking that logistical know-how a step further by expanding into freight brokerage — arranging the transportation of goods for clients and earning a commission in the process. If that sounds like you, there is one non-negotiable requirement standing between you and legally operating as a freight broker: the federal freight broker bond, also known as the BMC-84 bond.
Missing this requirement does not just slow down your business — it can result in federal enforcement action, loss of operating authority, and serious financial liability. This May, if you are a general contractor in Indiana considering the freight brokerage side of the industry, here is exactly what you need to know.
What Is a Freight Broker Bond and Why Do General Contractors Need It?
A freight broker bond is a type of surety bond required by the Federal Motor Carrier Safety Administration (FMCSA) for anyone who wants to operate as a licensed freight broker in the United States. It is not an insurance policy for your own business — it is a financial guarantee to your clients and carriers that you will fulfill your contractual and financial obligations.
For Indiana general contractors who already manage subcontractors, suppliers, and job site deliveries, stepping into freight brokerage can feel like a natural progression. You understand logistics. You know how to coordinate moving parts. But the federal government requires all freight brokers — regardless of their professional background — to carry this bond before they can receive or maintain their FMCSA operating authority.
The bond works like this: if you fail to pay a carrier for services rendered or otherwise breach your brokerage obligations, the harmed party can file a claim against your bond. The surety company steps in to pay that claim up to the bond limit, and then you are required to reimburse the surety. It protects shippers and carriers — not the broker — from financial harm caused by unethical or negligent brokerage practices.
Indiana Freight Broker Bond Requirements: The Key Numbers
Whether you are based in Evansville, South Bend, or anywhere else in Indiana, the freight broker bond requirements are set at the federal level, so they apply uniformly across all 50 states. Here is what you need to know:
- Required bond amount: $75,000 — This is the minimum bond amount required by the FMCSA under 49 CFR Part 387. This amount was increased from $10,000 to $75,000 back in 2013 and has remained at this level.
- Bond form: BMC-84 — This is the specific FMCSA form used for freight broker surety bonds. Some brokers alternatively use a BMC-85 trust fund, but the surety bond via BMC-84 is the most common route.
- Filing requirement: Your surety company must file the BMC-84 bond directly with the FMCSA on your behalf. Statement Bonds, powered by Merchants Bonding Company, handles this electronic filing process.
- Continuous coverage: The bond must remain active and in force for as long as you hold your freight broker operating authority. A lapse in coverage triggers automatic suspension of your FMCSA authority.
- Annual premium cost: Your actual cost to obtain the bond depends on your personal credit and business financials. Premiums typically range from around 1% to 4% of the $75,000 bond amount, meaning most applicants pay somewhere between $750 and $3,000 per year.
It is also worth noting that Indiana does not impose additional state-level freight broker bonding requirements on top of the federal mandate. Once your federal bond is in place and your FMCSA authority is active, you are cleared to operate throughout Indiana and across state lines.
How the Application Process Works for Indiana General Contractors
If you are a general contractor in Indiana who is new to freight brokerage, the path to getting bonded and licensed involves a few coordinated steps. Here is a practical overview of how the process typically unfolds this spring:
- Register with the FMCSA: Apply for your freight broker operating authority through the FMCSA’s Unified Registration System (URS). You will need a USDOT number and an MC number (Motor Carrier number) as part of this registration.
- Obtain your freight broker bond: Apply for your BMC-84 surety bond through a licensed surety agency like Statement Bonds. The application is fast — often completable in minutes online — and approval can happen the same day for many applicants.
- Bond filing with FMCSA: Once your bond is issued, your surety provider files it electronically with the FMCSA. This filing activates your bonding requirement within the federal system.
- Wait for authority activation: After all filings are confirmed, there is typically a short waiting period before your operating authority becomes active. Once active, you are legally authorized to broker freight throughout Indiana and beyond.
- Maintain your bond annually: Keep your bond current by renewing it each year. Missing a renewal payment causes your bond to lapse and your authority to be suspended — something no busy Indiana contractor can afford heading into a full summer construction season.
Why Spring Is the Right Time to Get Bonded in Indiana
May is the ideal month for Indiana general contractors to take action on freight broker licensing. Construction activity is surging, shipping lanes are busy, and the demand for reliable freight coordination is climbing. Waiting until midsummer to get your bond and authority in place means missing out on weeks of potential revenue during one of the most active logistics periods of the year.
Additionally, the freight brokerage industry has seen increased regulatory scrutiny from the FMCSA in recent years. Operating without a valid bond — even briefly — exposes you to civil penalties and could jeopardize your existing contractor relationships and reputation in the Indiana construction market. Getting properly bonded now protects both your new freight brokerage venture and your core contracting business.
Statement Bonds is powered by Merchants Bonding Company, an A-rated surety with a track record dating back to 1933. We serve Indiana businesses and contractors with fast, straightforward bonding solutions — no complicated paperwork, no long waits.
Ready to get your Indiana freight broker bond today? Visit statementbonds.com to get an instant online quote in minutes and take the first step toward expanding your business this spring.