Is a BMC-84 bond or a BMC-85 trust fund cheaper?

They cost differently, not just different amounts. A BMC-84 costs an annual premium a surety sets per applicant against the $75,000 requirement, while a BMC-85 requires the qualifying assets themselves to sit in trust, so the cost is having that capital locked up. Which is cheaper depends on your credit and what else the money could be doing.

Who files the BMC-84 or BMC-85 with FMCSA?

A financial responsibility provider (insurance or surety company) must file the required forms on the applicant's behalf. Applicants may not file insurance forms for themselves.

What assets can go into a BMC-85 trust?

Evidence of a trust fund agreement is filed with FMCSA on Form BMC-85 by a financial institution. The regulation limits trust assets to cash, irrevocable letters of credit issued by a federally insured depository institution, and Treasury bonds, held so they can be liquidated to cash within 7 calendar days.

Broker authority

BMC-84 vs BMC-85

Every property broker keeps $75,000 of financial security on file with FMCSA under 49 CFR 387.307. A BMC-84 surety bond covers it for an annual premium; a BMC-85 trust fund covers it with your own assets held by a financial institution. Same requirement, two very different uses of capital.

By Evan Reid, Founder of Haul Handbook · Updated Jul 22, 2026

What the two filings are

The surety bond or trust fund ensures the financial responsibility of the broker by providing for payments to shippers or motor carriers if the broker fails to carry out its contracts, agreements, or arrangements. The instrument you pick decides who is putting up the money:

BMC-84: Evidence of a surety bond is filed with FMCSA on Form BMC-84. A surety company issues the bond and files it on the broker's behalf; the broker pays the surety a premium rather than depositing the full amount.
BMC-85: Evidence of a trust fund agreement is filed with FMCSA on Form BMC-85 by a financial institution. The regulation limits trust assets to cash, irrevocable letters of credit issued by a federally insured depository institution, and Treasury bonds, held so they can be liquidated to cash within 7 calendar days.
Who files: A financial responsibility provider (insurance or surety company) must file the required forms on the applicant's behalf. Applicants may not file insurance forms for themselves.

The real difference: premium vs locked capital

With a BMC-84, the surety's money stands behind you and you pay for that standing every year. The premium is set per applicant, and the premium either way is its own page, with the published industry ranges. With a BMC-85, the money standing behind you is yours: the regulation limits what a trust can hold and requires it to stay liquid.

If payments from the bond or trust reduce the security below $75,000, the surety company or financial institution must notify FMCSA within 2 business days, and FMCSA may suspend the broker's operating authority within 7 business days unless the full amount is restored. That mechanism is identical for both instruments, which is the point: FMCSA does not care whose capital fills the security, only that it stays full.

How to decide

The decision is a capital question, not a compliance one. If holding $75,000 of qualifying assets in trust would starve the brokerage of working cash, the bond premium buys that capital back. If the cash is idle anyway and your credit would price the premium high, the trust avoids a recurring cost. Where this sits in the full broker filing sequence and what the registration itself means are covered in the broker authority explainer.

Frequently asked questions

Is a BMC-84 bond or a BMC-85 trust fund cheaper?: They cost differently, not just different amounts. A BMC-84 costs an annual premium a surety sets per applicant against the $75,000 requirement, while a BMC-85 requires the qualifying assets themselves to sit in trust, so the cost is having that capital locked up. Which is cheaper depends on your credit and what else the money could be doing.
Do BMC-84 and BMC-85 satisfy the same FMCSA requirement?: Yes. Both are evidence of the $75,000 broker financial security required by 49 CFR 387.307. The surety bond or trust fund ensures the financial responsibility of the broker by providing for payments to shippers or motor carriers if the broker fails to carry out its contracts, agreements, or arrangements.
Who files the BMC-84 or BMC-85 with FMCSA?: A financial responsibility provider (insurance or surety company) must file the required forms on the applicant's behalf. Applicants may not file insurance forms for themselves.
What assets can go into a BMC-85 trust?: Evidence of a trust fund agreement is filed with FMCSA on Form BMC-85 by a financial institution. The regulation limits trust assets to cash, irrevocable letters of credit issued by a federally insured depository institution, and Treasury bonds, held so they can be liquidated to cash within 7 calendar days.
What happens if a claim reduces the security below the required amount?: If payments from the bond or trust reduce the security below $75,000, the surety company or financial institution must notify FMCSA within 2 business days, and FMCSA may suspend the broker's operating authority within 7 business days unless the full amount is restored.

Sources

Primary statutes and official agency pages this guide relies on. Laws and fees change, so confirm against the current source before you act.

49 CFR 387.307: Property broker security (eCFR, current) · Electronic Code of Federal Regulations, U.S. Government Publishing Office
Insurance Filing Requirements · Federal Motor Carrier Safety Administration (FMCSA), U.S. DOT
Freight Broker Bonds · Surety Bond Professionals

Haul Handbook publishes educational information about trucking registration and compliance requirements. This is not legal, financial, or tax advice. Rules, fees, and deadlines change; confirm with the agency before you file or pay.