Description
Broker Authority
Broker Authority is an FMCSA operating authority that allows an individual, partnership, or corporation to legally arrange transportation of freight for others without physically handling the goods.
Broker Authority is essential for companies offering freight broker services, transportation logistics, and interstate shipping coordination in the trucking industry.
Need to Know
Types of Broker Authority
- Broker of Property/Freight: Designed for those facilitating the transportation of various items for others, excluding household goods.
- Broker of Household Goods: Tailored for businesses focusing on the transportation of household goods, permitting the arrangement of moving personal items.
A $75,000 Surety Bond or Trust Fund Is Required
- All brokers must file financial responsibility with the FMCSA, usually through a BMC-84 surety bond or BMC-85 trust fund, in the amount of $75,000. This protects carriers and shippers in case of unpaid freight charges or disputes.
Operating Without Authority Can Lead to Fines
- Running brokerage operations without proper authority or outside the scope of your authority can result in fines, penalties, and damage to your company’s reputation.
Why DOT Compliance Group?
- We Simplify Complex Federal Requirements
- We File Quickly and Accurately
- We Help Prevent Fines and DOT Number Deactivation
- We Provide Real Support — Not Automated Bots
- We Stay With You Beyond a Single Filing
Frequently Asked Questions
What is Broker Authority?
Broker Authority is an FMCSA operating authority that allows an individual, partnership, or corporation to legally arrange transportation of freight for others without physically handling the goods. Unlike motor carriers, freight brokers are only responsible for arranging transportation services, not transporting the goods themselves.
Do I need a surety bond to get Broker Authority?
Yes. All brokers must file financial responsibility with the FMCSA, usually through a BMC-84 surety bond or BMC-85 trust fund, in the amount of $75,000. This financial security protects carriers and shippers in case of unpaid freight charges or disputes.
What are the types of Broker Authority?
There are two main types of Broker Authority. Broker of Property/Freight is for those facilitating the transportation of various items excluding household goods. Broker of Household Goods is tailored for businesses focusing on arranging the transportation of personal items and property used in homes.
What happens if I operate as a broker without authority?
Running brokerage operations without proper authority or outside the scope of your authority can result in fines, penalties, and damage to your company’s reputation. Staying compliant with FMCSA regulations protects your business and helps avoid enforcement actions.
