The Significance of Trucking Bonds


Trucking bonds are essential tools motor carriers and shippers need to safeguard against potential risks associated with transporting goods. As such, they play a critical role in the trucking industry. Any business that uses trucks to transport goods or provide services needs trucking bonds to finance operations safely.

Trucking bonds provide a guaranteed third-party assurance that truckers will perform the service, deliver the goods or repay their obligations. When a claimant demands payment against your bond, the insurer attempts to have you reimburse legitimate claims and will pay off if you fail to comply. However, since bonds operate like a loan, you need to understand that it takes a good business reputation and solid credit to obtain them.

How Trucking Bonds Impact Your Business

Trucking bonds safeguard your business and finances while boosting your company’s reputation because they support your business and help you fulfill contractual obligations. Remember, other than your collections and credit score, delivering as promised is the key to lowering the costs of your trucking bonds and maintaining a good standing with government regulators.

Types of Trucking Bonds

Business operations determine the type of trucking bonds you need. Among various trucking bonds, these are the most popular types:

Freight Broker Bond

US Customs Bond

Fuel Tax License Bond

COD Delivery Bond

What Is a Freight Broker Bond?

A freight broker bond provides a guarantee that motor carrier truckers contracted by the freight broker will be paid by the broker. However, the Federal Motor Carrier Safety Administration (FMCSA) requires a $75,000 surety bond in order to be a licensed Freight Broker of Property. The bonds ensure brokers follow through on their contracts with shippers and carriers.

Freight Broker Bonds are also known as:

  • BMC-84 surety bond. This is the FMCSA required form.
  • Trucking surety bond.
  • Transportation broker surety bond.

When Do Truckers Need a US Customs Bond?

A trucker may apply for, and receive, permission to transport imported goods that have not yet cleared Customs.  This is typical when the transportation involves container freight from the Port.  The bond is required by US Customs, as a guarantee of payment to US Customs,  in the event that fines and penalties are imposed due to the trucker not following the required protocol in the transportation.  Transportation of In-Bond freight, prior to Customs clearance is necessary to keep the freight moving off the ships and into bonded warehouses.

What Is a Fuel Tax License Bond?

Truckers that travel out of state are required to pay their share of taxes for the use of the highways in each state.  Ultimately, those taxes are generally collected based upon the mileage and fuel used in the state.  Most of these taxes are handled by the IRP registration process but there are some states, and circumstances, where the state will require the trucker post a bond for that state’s taxes.  Oregon is one such state. This bond is usually for a very small amount ($2500), is very easy to obtain, and cost very little.

What Is a COD Delivery Bond?

Collect on Delivery bonds assure the faithful remittance of sums collected by the Trucker for  deliveries requiring cash payment. Subsequently, the Trucker receives cash for the delivery and then must pay the shipper the amount they collected. This bond guarantees that the Trucker will pay the shipper.

Western Truck Insurance has a 30-year history of delivering top-notch coverage for commercial vehicle owners and drivers. We respect your business’s importance to your family, employees, and clients. Our mission is to safeguard you and your business with the best protection and competitive rates. Our staff uses our industry expertise and independent agent status to shop the marketplace to find affordable, comprehensive coverage for your trucking bonds and insurance needs.