Freight Broker (BMC-84) Bond Claim Form

Claim Filing:

To file a claim on a BMC-84 bond, you must submit the following documents to Allegheny Casualty Company ("ACC"):

• A complete copy of the original, carrier-signed Rate/Load Confirmation.
• A complete copy of the executed Broker- Carrier Agreement.
• A complete copy of the Bill of Lading which contains the following information:
  • The date and location of load pick up.
  • The date and location of the load drop off.
  • A description of the commodity hauled.
• A copy of the Proof of Delivery, usually a dated signature from the consignee.
• A copy of the Invoice for the transportation service and proof the invoice was submitted to the broker for payment.
• A copy of the written (email) correspondence between the carrier and the broker.
• A completed and notarized Proof of Claim form executed by the bond beneficiary or their attorney-in-fact. You will receive a Proof of Claim form to complete with instructions once your claim is submitted.
• Notice of Assignment (if applicable).
• Power of Attorney to submit claim if submitting on behalf of a carrier/shipper (if applicable).

A completed and notarized Proof of Claim form must be included with the claim submission. Please be advised that your claim filing is not completed until all the above-listed documents are received.

Broker Notification:

Once a claim is filed, Allegheny Casualty Company ("ACC") will notify the broker of the claim. The broker will be given 30 days to pay/resolve the claim or provide a written dispute. If payment has been made or is pending, ACC will request proof of payment from the broker. If there is a dispute over the invoice, the dispute must be supported with agreed-upon terms in the rate confirmation or the broker-carrier agreement.

Payment of Claims:

If a broker fails to pay/resolve or adequately dispute a claim within 30 days of receipt of notice of the claim from ACC, ACC will commence investigation of the claim and determine if any coverage exemptions apply..

According to 49 USC 13906(2)(A), the surety may only pay a claim if one of three conditions are met:

1. Subject to review by the surety provider, the broker consents to the payment.
2. In any case in which the broker does not respond to adequate notice to address the validity of the claim, the surety provider determines that the claim is valid.
3. Or the claim is not resolved within a reasonable time after a reasonable attempt by the claimant to resolve the claim under clauses (i) and (ii) and the claim is reduced to a judgment against the broker.

​Coverage Exclusions:

There are certain instances in which a claim on a freight broker (BMC-84) bond would not be covered. The following is a list of exclusions that apply to claims submitted against a freight broker (BMC-84) bond.

• The claim is not covered if it is for an intrastate load that was transported entirely within the boundaries of a single state. A load must have been transported interstate or across a state or federal border, to fall under the authority of the FMCSA.
• The claim is not covered if it is for a load carrying exempt commodities. Exempt commodities are not regulated by the FMCSA and include any unprocessed, agricultural, and/or perishable cargo. For a comprehensive list of commodities that are considered exempt, please visit: Composite Commodity List (dot.gov).
• The claim is not covered if it is for a load that was contracted for transportation by the freight broker outside the effective period of the BMC-84 bond. Any loads contracted prior to the bond's effective date or after the bond's effective cancellation date would not be covered under the bond. Please visit Licensing & Insurance Home Page (dot.gov) to confirm your claim falls within the effective period of the ACC’s BMC-48 bond.
• The claim is not covered if the person/entity submitting the claim is not a licensed motor carrier or shipper of goods. The only parties that can benefit from the protections afforded by the BMC-84 bond are licensed motor carriers and shippers of goods i.e., beneficiaries. Any third parties submitting claims on a beneficiary's behalf must have been given proper power of attorney and authority by the beneficiary to file a claim on the beneficiary's behalf.
• The claim is not covered if filed after the 60-day period for submission of claims has expired if the bond was cancelled due to financial insolvency. Please visit Freight Broker Bond Cancellation List - Allegheny Casualty Company for a list of bonds that have been cancelled for financial insolvency and applicable claim deadlines.

Broker Insolvency

If the broker is unresponsive to ACC's communications regarding the claim, ACC will investigate the broker for suspected financial insolvency. If determined insolvent, notice of the broker's insolvency will be published on our website here: Freight Broker Bond Cancellation List - Allegheny Casualty Company, in accordance with 49 USC 13906. Once the surety determines the broker is insolvent, the bond is subject to the provisions of 49 USC 13906(6).

According the 49 USC 13906(6):

If a broker registered under this chapter experiences financial failure or insolvency, the surety provider of the broker shall

1. submit a notice to cancel the financial security to the Administrator in accordance with paragraph (4);
2. publicly advertise for claims for 60 days beginning on the date of publication by the Secretary of the notice to cancel the financial security; and
3. pay, not later than 30 days after the expiration of the 60-day period for submission of claims
   1. all uncontested claims received during such period; or
   2. a pro rata shares of such claims if the total number of such claims exceeds the financial security available.

The FMCSA requires licensed freight brokers to maintain a surety bond (BMC-84) or trust fund agreement (BMC-85) of $75,000.00. If the monetary value of valid claims filed on the bond during the 60-day period exceeds $75,000.00, then each claimant will receive a pro-rated amount for the claim that is proportional to the amount of their original claim submission.

Please be advised ACC will not be able to process your claim for payment under the “Broker Insolvency” provisions of 49 USC 13906(6) if you do not submit all the required documents before the end of the 60-day claim period. 

Claimant Information

The company/person filing the claim is considered the "Claimant." The contact information below should be that of the Claimant. The provided information will be used to contact you regarding the claim.

Company name*

Address*

Your carrier's USDOT number

Broker Information

The company/person responsible for arranging the transportation and for issuing payment upon completion of the work or service provided is the "broker." The provided information should be that of the Broker.

Company name*

Address*

Bond no.*

Claim Information

Load no.*

Please provide as much information as possible.