BMC-84 surety bonds and BMC-85 lines of credit have some things in common, but it�s important to understand their differences. Learn more about these bonds below, and contact Single Source Insurance today to speak with an agent regarding your bonding needs or to apply for a bond.
What Are They?
The U.S. government, specifically the Federal Motor Carrier Safety Administration, or FMCSA (an agency of the Department of Transportation), gives freight brokers and freight forwarders two options for meeting its $75,000 requirement for funds to cover possible claims made against them by shippers or carriers. Meeting this requirement is a condition for obtaining and keeping a license to operate legally within the United States. The two options are:
A surety bond (known as BMC-84) in the amount of $75,000.
A trust (BMC-85) secured by $75,000 in cash, an irrevocable letter or credit or line of credit, or a combination of cash and LOC
The names �BMC-84� and �BMC-85� come from the names of the forms that must be filed with the FMCSA.
BMC-84 and BMC-85 solutions do not protect a freight broker or freight forwarder from liability. There is liability insurance for that purpose. Rather, BMC-84 and BMC-85 instruments protect truckers and shippers against nonpayment by freight brokers or forwarders that owe them money.
What Are BMC-84 and BMC-85 Surety Bonds?
Since BMC-84 or BMC-85 coverage for claims is a federal licensing requirement, purchasing it is mandatory for freight brokers and forwarders doing business in the United States. Because BMC-85�s require a large amount of cash, smaller freight brokers and carriers typically opt for the BMC-84 surety bond instead.
How Do They Work?
A BMC-84 bond works like other surety bonds that are categorized as license and permit bonds. There are three parties involved in the surety bond agreement:
The obligee that requires the purchase of a bond (FMCSA)
The principal required to purchase a bond (the freight broker or forwarder)
The company that issues the bond (the surety)
The bond obligates the principal to abide by all applicable laws and industry standards, including payment of fees owed to truckers and shippers. Failure to comply with the terms of a BMC-84 bond related to payment of transportation fees can result in a trucker or shipper filing a claim against the bond.
The surety will investigate each claim and make sure it is valid and then try to negotiate a settlement with the claimant. If no settlement is reach, the surety will pay the claim on behalf of the principal, but the principal must subsequently reimburse the surety. An indemnification clause in the surety bond contract makes the principal solely responsible for paying valid claims.
The main difference for freight brokers and forwarders who establish a BMC-85 trust instead of purchasing a BMC-84 surety bond is that the cash or LOC needed to pay claims is already held in the trust and is used for direct claims payments by the trust company to truckers and shippers with valid nonpayment claims.
What Do They Cost?
The annual premium payment for a BMC-84 bond is a small percentage of the required $75,000 bond amount. The surety sets that percentage based largely on the applicant�s credit score. For people with acceptable credit, the premium rate will typically be from 1% to 5%. People with serious credit challenges can still get a bond but may pay a higher premium rate.
If you choose the BMC-85 option, in addition to funding the required trust with $75,000 up front, you�ll also pay an annual administrative fee to the bank or trust company. This fee is generally in the neighborhood of $1,500 per year.
Get Bonded Today
If you�ve decided that a BMC-84 bond is right for you, apply online today with Single Source Insurance. Our experienced agents can also help to discuss your needs so you can decide between a BMC-84 and BMC-85.
bond, federal motor carrier safety administration, cargo, trust, insurance, freight broker bond, insolvency, liability insurance, bmc 85 bond, broker, debt, credit, surety, performance bond, license, company, fee, transport, option, payment, contract, letter of credit, credit score, asset, truck, collateral, cash, guarantee, interstate commerce commission, freight forwarder, line of credit, information, legal liability, lawyer, regulation, truck insurance, surety bond quote, request a quote, moving ahead, broker bonds, bmc85, percentage, financial institution, indemnity, failure, credit history, cost, underwriting, fraud, finance, law, business, policy, property, payment bond, damages, financial statement, bmc 84 or bmc 85, broker bond, vehicle, united states code, risk, investment, bill of lading, bmc 85, risk management, moving ahead for progress in the 21st century act, logistics, management, loan
Frequently Asked Questions
How many gears does a BMC 85 tractor have?
The BMC 85 tractor has 8 forward gears and 2 reverse gears.
What is the fuel capacity of BMC 85 bus?
The fuel capacity of the BMC 85 bus is 210 liters.
Is the BMC 85 a diesel-powered tractor?
The BMC 85 is a diesel-powered tractor.
What is the shelf life of BMC 85 bond?
The shelf life of BMC 85 bond is typically 12 months when stored at room temperature in a dry, well-ventilated area and away from direct sunlight.
How many gear options does BMC 85 bus have?
The BMC 85 bus has 5 gear options.
Is the BMC 85 a two-wheel drive tractor?
The BMC 85 is a two-wheel drive tractor designed for small-scale farming and landscaping applications.
What is the fuel capacity of a BMC 85 tractor?
The fuel capacity of a BMC 85 tractor is 40 liters.
Is BMC 85 bond resistant to extreme weather conditions?
The BMC 85 bond is designed to be resistant to extreme weather conditions, providing reliable performance in challenging environments.
How long does it take for BMC 85 bond to set and cure?
The BMC 85 bond typically sets and cures within 24 to 48 hours, depending on temperature and humidity conditions.
What are the safety precautions when handling BMC 85 bond?
The safety precautions when handling BMC 85 bond include wearing protective gloves, working in a well-ventilated area, and following the manufacturer's instructions for proper handling and storage.
Can the BMC 85 tractor be used for heavy-duty work?
The BMC 85 tractor is capable of performing heavy-duty work due to its robust design and powerful engine, making it suitable for a variety of demanding agricultural and landscaping tasks.
What are the advantages of using BMC 85 bond over other adhesives?
The advantages of using BMC 85 bond over other adhesives include its superior adhesion, higher tensile strength, and greater resistance to temperature and moisture, making it a more durable and reliable bonding solution.
What is the weight of a BMC 85 tractor?
The weight of a BMC 85 tractor is approximately 4,200 pounds, or 1,905 kilograms.
Is BMC 85 bus available in diesel variant?
The BMC 85 bus is available in a diesel variant.
What is the horsepower of a BMC 85 tractor?
The horsepower of a BMC 85 tractor is 85 horsepower.
Can the BMC 85 tractor be used for plowing?
The BMC 85 tractor can be used for plowing. It is designed with the necessary power and attachments to effectively plow fields and prepare the soil for planting.
Can BMC 85 bond be used for underground construction projects?
The BMC 85 bond can be used for underground construction projects as it is designed to withstand the harsh conditions and pressures associated with underground applications.
How does BMC 85 bond improve the strength of concrete structures?
BMC 85 is a bonding agent that enhances the adhesion between concrete and reinforcing materials, improving the overall strength and durability of concrete structures.
Can BMC 85 bond be used for vertical or overhead applications?
The BMC 85 bond can be used for vertical or overhead applications.
Is BMC 85 bond suitable for use in high-traffic areas?
The BMC 85 bond is suitable for use in high-traffic areas due to its durability and resistance to wear and tear. It is designed to withstand heavy foot traffic and maintain its integrity over time.
What is the seating capacity of BMC 85 bus?
The seating capacity of the BMC 85 bus is 35 passengers.
Is the BMC 85 suitable for small-scale farming?
The BMC 85 is suitable for small-scale farming as it is a compact and maneuverable tractor designed for use on smaller plots of land, with features that cater to the needs of small-scale farmers.
What is the maximum load for BMC 85 tractor?
The maximum load for the BMC 85 tractor is 2,500 kilograms or 5,512 pounds.
Is BMC 85 bond safe for indoor use?
BMC 85 bond is generally considered safe for indoor use, as it is a low-volatile organic compound (VOC) adhesive designed for interior applications.
How does BMC 85 perform in cold climates?
The BMC 85 is designed to perform well in cold climates, with features such as enhanced insulation and cold-weather components that maintain its functionality and efficiency in low-temperature environments.
What materials can BMC 85 bond adhere to?
The BMC 85 bond can adhere to a variety of materials, including metals, plastics, and composites, making it a versatile adhesive solution for various industrial applications.
What are the maintenance requirements for BMC 85 tractor?
The maintenance requirements for the BMC 85 tractor include regular oil changes, cleaning the air filter, checking the battery, and inspecting the tires and brakes to ensure optimal performance and longevity.
Can BMC 85 bus accommodate wheelchair access?
The BMC 85 bus is equipped with wheelchair accessibility features, allowing passengers using wheelchairs to board and travel comfortably.
What is the recommended operating temperature for BMC 85 bond?
The recommended operating temperature for BMC 85 bond is between 20°C and 30°C.
Are there any color options for BMC 85 bond?
The available color options for BMC 85 bond include white, black, and gray.
bmc 84, bmc 85, difference between bmc 84 and bmc 85, bmc 84 surety bond, bmc 85 bond
bond, insurance, lawyer, contract, payment, performance bond, payment bond, miller act, surety, lien, law, little miller act, fee, credit, lawsuit, plaintiff, license, subcontractor, title, construction, money, waiver, statute, general contractor, good faith, receipt, guarantee, power of attorney, court, expense, construction contract, policy, florida surety bond, notary, claim, company, surety bond, certificate, contractor, principal, bond claim, florida title bond, information, cash, nationwide mutual insurance company, freight broker bond, mortgage broker, fidelity bond, mortgage, underwriting, vehicle, employee retirement income security act of 1974, risk, investment, farm, nationwide mutual insurance, nationwide, tax, resource, new mexico, customs, motor vehicle, nationwide surety and fidelity, illinois, business, fraud, property, employment, commercial underwriter, insurance company, finance, theft, california, health, insurance policy, oregon, fiduciary, arizona, email address, dishonesty, kansas, management, marketing, minnesota, west virginia, financial institution, new jersey, indiana
Frequently Asked Questions
What is the cost of a Florida surety bond premium?
The cost of a Florida surety bond premium depends on various factors, such as the bond type, the bond amount, and the applicant's creditworthiness. Typically, the premium ranges from 1% to 5% of the total bond amount.
What is a Florida surety bond and how does it work?
A Florida surety bond is a legally binding agreement where a surety company guarantees the performance of a principal, ensuring they fulfill their obligations according to state regulations. The bond serves as a financial guarantee for the state.
What types of Florida surety bonds are available for licensees?
The types of Florida surety bonds available for licensees include contractor bonds, license and permit bonds, motor vehicle dealer bonds, and other specialized bonds required for certain regulated professions and businesses in the state.
How to choose a nationwide surety bond provider?
When choosing a nationwide surety bond provider, look for a family-owned business with an in-house surety bond underwriter, personalized service, and certifications from trusted associations.
What types of nationwide surety bonds are available?
The types of nationwide surety bonds available include federal, commercial, and contract bonds that can be obtained for various industries and business activities across the United States.
What is the purpose of nationwide surety and fidelity bonds?
The purpose of nationwide surety and fidelity bonds is to provide financial protection and guarantee the fulfillment of contractual obligations or employee responsibilities.
Who requires a nationwide surety bond in the United States?
Nationwide surety bonds are required for various businesses and professionals in the United States, such as contractors, freight brokers, and financial service providers, to ensure compliance with state and federal regulations.
What is the cost of a nationwide surety bond?
The cost of a nationwide surety bond varies depending on the bond amount, industry, applicant's credit history, and other factors. Typically, the premium for a nationwide surety bond ranges from 1% to 3% of the total bond amount.
What is a nationwide surety bond and how does it work?
A nationwide surety bond is a type of bond that provides coverage across multiple states. It works by guaranteeing the performance of a contract or obligation, ensuring the principal's compliance with relevant laws and regulations.
Can I get a Florida surety bond with bad credit?
Obtaining a Florida surety bond with bad credit is possible, but the process may be more challenging. The surety company will likely require additional collateral or a co-signer with good credit to mitigate the risk.
Can I get nationwide surety bonds with bad credit?
Yes, you can obtain nationwide surety bonds even with poor credit, as our in-house underwriting authority allows us to assess your specific circumstances and provide customized bond solutions that meet your business needs.
What types of businesses need nationwide surety bonds?
Businesses that require nationwide surety bonds include contractors, construction companies, transportation firms, financial institutions, and any other companies that need to provide guarantees or security for their operations across multiple states.
Are nationwide surety bonds required by law?
Nationwide surety bonds are required by law in certain industries and for certain types of business activities to protect consumers and ensure compliance with regulations.
Who needs a Florida surety bond in the construction industry?
Contractors, subcontractors, and construction businesses in Florida are required to obtain a surety bond to ensure they fulfill their contractual obligations and protect project owners, suppliers, and workers.
How do I obtain a Florida surety bond for my business?
To obtain a Florida surety bond for your business, you need to contact a licensed surety bond agency that can help you determine the appropriate bond type and amount required for your specific business operations in Florida.
How long does it take to get approved for a Florida surety bond?
The approval process for a Florida surety bond typically takes 1-2 business days, provided all required information and documentation is submitted accurately and completely.
What factors influence Florida surety bond costs?
The factors that influence Florida surety bond costs include the applicant's credit history, the type of bond required, the bond amount, and the industry or project the bond is for. These factors are used to assess the risk and determine the bond premium.
How do Florida surety bonds protect businesses?
Florida surety bonds protect businesses by providing financial guarantees that the business will fulfill its contractual obligations. This safeguards the interests of the business's clients, ensuring they are compensated if the business fails to meet its commitments.
What are common misconceptions about Florida surety bonds?
Common misconceptions about Florida surety bonds include that they are only required for certain types of businesses, that they are too expensive, and that they are difficult to obtain.
Which industries commonly use Florida surety bonds?
Florida surety bonds are commonly used in the construction, contracting, real estate, and financial services industries to ensure compliance with state regulations and protect consumers.
What are the benefits of nationwide surety bonds?
The benefits of nationwide surety bonds include personalized service from a family-owned business, an in-house surety bond underwriter authority, and certifications from trusted associations.
How do I file a claim on nationwide bonds?
To file a claim on nationwide bonds, you can contact the bond agency that issued the bond or the surety company directly. They will provide you with the necessary information and forms to initiate the claims process.
What documents are needed for a nationwide bond?
The documents needed for a nationwide bond typically include a completed application, financial statements, and any required supporting documentation such as licenses and permits.
What happens if I default on a surety bond?
If you default on a surety bond, the obligee (the party you issued the bond to) can make a claim against the bond, and the surety company will be required to pay the claim. This may result in you having to reimburse the surety company for the amount paid.
How are nationwide surety bonds regulated?
Nationwide surety bonds are regulated by state and federal laws, which ensure that bond providers meet specific requirements to issue surety bonds. These regulations govern the licensing, financial stability, and underwriting practices of surety bond providers.
Can I change the terms of my surety bond?
The terms of a surety bond can typically be modified, but the process may vary depending on the type of bond and the specific requirements of the obligee. Consult with your surety bond provider to understand the options available for modifying the terms of your surety bond.
What is the renewal process for Florida surety bonds?
The renewal process for Florida surety bonds typically involves submitting a renewal application, providing updated financial information, and paying the required renewal fees to the Florida Department of Financial Services.
How do nationwide bonds differ from state bonds?
Nationwide bonds differ from state bonds in their geographic coverage and regulatory requirements. Nationwide bonds are issued at the federal level and have uniform standards, whereas state bonds are subject to the specific laws and regulations of the issuing state.
What risks are covered by fidelity bonds?
Fidelity bonds cover risks of employee dishonesty, including theft, forgery, and misappropriation of funds or property by employees.
Who can assist in surety bond applications?
Our family-owned surety bond agency can assist with surety bond applications. We have an in-house surety bond underwriter authority and offer personalized service to provide the right bonds for your needs.
single source insurance, buy surety bond, florida surety bond, nationwide surety and fidelity, surety bonds online, leading surety bonds providers florida, singlesource insurance, surety bond online quote, surety bonds insurance companies miami fl, absolute surety, orlando surety bonds
About Single Source Surety
Personalized Service and Trusted Expertise
As a family-owned business, Single Source Surety takes pride in offering personalized service and genuine care for our clients. We understand that you've built your business on hard work and dedication, and we're here to provide the peace of mind you deserve when it comes to securing the right bonds at the right price.
Our in-house surety bond underwriter authority allows us to assemble the exact bond you need, no matter your industry. We only work with "A" rated U.S. Treasury listed Insurance Companies, ensuring the highest level of trust and reliability.
