Your Compliance Obligations as a Licensed Broker
Freight brokers licensed with the FMCSA operate under a specific set of regulatory obligations. Violating these isn't just a fine risk — it can mean suspension of your operating authority and personal liability for cargo claims.
Core Requirements
Operating Authority
Every freight broker must hold active broker authority (MC number) issued by the FMCSA. This must be maintained continuously — letting it lapse even briefly can create legal exposure for loads brokered during the gap period.
Surety Bond or Trust Fund
As of 2013, freight brokers are required to maintain a $75,000 surety bond (BMC-84) or equivalent trust fund (BMC-85). This protects motor carriers and shippers in the event the broker defaults on payment obligations.
Carrier Vetting
Brokers are responsible for ensuring carriers they work with hold active operating authority, proper insurance (minimum $750,000 for most freight, $1M+ for hazmat), and do not have a history of serious safety violations. While FMCSA regulations don't mandate a specific verification process, brokers who cannot demonstrate due diligence face liability in disputes.
Record-Keeping Requirements
Brokers must maintain records of all transactions for a minimum of three years, including: shipper information, carrier information, rate information, and the basis for carrier selection. These records must be available for FMCSA inspection on request.
How Automated Verification Supports Compliance
One practical benefit of automated carrier verification tools is the compliance record they generate. When you use DispatchDOS to verify carriers, you have a timestamped, documented record of the verification — what data was checked, when, and what the result was. This is valuable documentation if a claim ever goes to dispute.