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Broker Bond Cancelled? What Carriers Should Do Before It's Too Late

Not legal advice. This is a document-preparation tool, not a law firm. Results aren't guaranteed. Verify all info with FMCSA and consult an attorney for legal questions.

Not legal advice. UnpaidLoad is a document-preparation tool, not a law firm. Verify facts with FMCSA and talk to an attorney about your contract and state law.

You're waiting on payment, you look the broker up, and the bond shows a pending cancellation. That's a warning sign. A broker without a bond or trust on file can lose its authority, and the money you're owed gets harder to reach every day you wait. Here's how bond cancellation works and what to do right now.

Check the broker first. It's free.

See authority status, authority age, BMC-84/85 on file, and the surety name from FMCSA records.

Broker owes you? Build a demand letter + bond-claim packet for

9.

How a broker bond gets cancelled

Every broker must keep a $75,000 surety bond (Form BMC-84) or trust fund (Form BMC-85) on file with FMCSA (49 CFR 387.307). Under that rule, the bond or trust may be cancelled only upon 30 days' written notice to FMCSA, filed on Form BMC-36 for a surety bond or Form BMC-85 for a trust fund. The notice period starts when FMCSA receives the notice. The general cancellation rule for filings is in 49 CFR 387.313.

Cancellation can be started by the surety (for example, for unpaid premium or claims) or by the broker. Either way, the 30-day window is your signal to move.

Step 1: Confirm it on FMCSA's record

Open the broker's record on FMCSA Licensing & Insurance (L&I) and look at the insurance and bond history. Note the surety or trustee name, the bond or trust number, the filing date, and the cancellation effective date. Screenshot it with the date showing. Our free Broker Check shows the BMC-84/85 filing, the surety name, authority status, and authority age in one place. See also how to find a broker's surety.

Step 2: Gather your claim documents today

If you factored the load, call your factor now. They may own the invoice and the claim. See factoring chargebacks.

Step 3: Send a short demand with a near deadline

Don't wait out a long payment cycle. Send a factual demand naming the load, amount, and a pay-by date well before the cancellation takes effect. Say you intend to file a claim with the named surety if unpaid. See how to write a demand letter.

Step 4: File with the surety early

Don't wait for the demand deadline to pass if the cancellation date is close. Contact the surety in writing, ask for its claim form and requirements, and ask how it treats claims for loads hauled before the cancellation date. Send a complete package and keep proof of delivery. Walk through it in how to file a broker bond claim and BMC-84 vs BMC-85.

If the broker is failing or insolvent

Under 49 CFR 387.307, when a surety determines a broker is in financial failure or insolvency, it must start cancellation and FMCSA posts a public notice in the FMCSA Register. The surety must then accept claims for 60 calendar days after that public notice. If you see that kind of notice, treat the 60 days as a hard limit and file right away. See when a broker goes out of business.

Stop hauling for the broker

Until the bond is reinstated or replaced, don't book new loads with this broker. Check again before every new load. Watch for other red flags in our broker red flags checklist.

Common mistakes

Bond cancellation pending? Move now.

Our $19 packet builds your demand letter and BMC-84 bond-claim letter from FMCSA data and your load details, including the surety name. Pro ($12/mo or $99/yr) adds broker alerts so you hear about filing changes sooner.

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Sources

FAQ

How long does a broker bond cancellation take?
Under 49 CFR 387.307, a BMC-84 surety bond or BMC-85 trust fund may be cancelled only on 30 days' written notice to FMCSA. The notice period starts when FMCSA receives the notice. FMCSA records usually show the pending cancellation and its effective date.
Can I still file a bond claim if the bond is cancelled?
Generally a bond covers obligations from the period it was in force, but surety rules and deadlines vary. File as early as you can, and ask the surety in writing how it handles claims for loads hauled before the cancellation date. Ask an attorney if the amount matters.
Where do I see if a broker's bond is being cancelled?
Check the broker's record on FMCSA Licensing & Insurance (L&I), which lists active and pending insurance and bond filings with effective and cancellation dates. Our free Broker Check also shows the BMC-84/85 filing and surety name from FMCSA data.
Check the broker first. It's free.

See authority status, authority age, BMC-84/85 on file, and the surety name from FMCSA records.

Broker owes you? Build a demand letter + bond-claim packet for $19.

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Not legal advice. This is a document-preparation tool, not a law firm. Results aren't guaranteed. Verify all info with FMCSA and consult an attorney for legal questions.