How to Get a Freight Broker License in Florida

For anyone interested in entering the freight brokerage business in Florida, obtaining a freight broker license is a mandatory requirement that allows you to operate your business in line with current regulations. Similar to other states that require a license, its purpose is to ensure your business is working within the law and that shippers and carriers are covered in the event of any unforeseen events or damages.
 
But how do you apply for and obtain a freight broker license in Florida? In this article, we walk you through the process, look at the specific requirements of the state, and answer some frequently asked questions on the topic. Read on to learn more.

Working as a Freight Broker in Florida

According to the US Bureau of Labor Statistics, the average mean wage for people working within cargo and freight in Florida is $50,400, which places it firmly within the top five states in the country for earnings. However, entering the transportation industry as a broker means you must fulfill certain responsibilities so that supply chains across the country are not adversely affected, so while profits can be high, it’s crucial that you understand your role in supply chain management.
 
Obtaining a freight broker license is a key element of working as a freight broker within the state of Florida, assuring shippers and carriers that the broker will fulfill payment obligations, comply with regulations, and cover damages or losses caused by their actions. It also helps cover legal expenses in case of disputes between the broker and the parties involved, with a surety bond providing a financial guarantee for shippers and carriers, ensuring that they have access to potential compensation.
 
Put simply, any freight broker business wishing to operate in Florida must have a license, and failing to maintain your license and the associated insurances and bonds will mean your business is operating illegally. For these reasons it is crucial that you understand the process and the prerequisites to obtaining a license.

Requirements for Obtaining a Freight Broker License in Florida

Unlike some other states, Florida does not require any specific freight broker training in order to apply for a license. However, you must have a high school diploma, GED or equivalent. Having said this, a dedicated freight broker training program can help your business achieve success, improve your reputation, and potentially increase profitability, so it’s usually a good idea to attend a training course before you apply for your license.
 
Additionally, there are a few other requirements that you should be aware of before you apply for your license, these are:

• Be at least 18 years old
• Have a clean criminal record
• Provide proof of liability and cargo insurance
• Obtain a $75,000 freight broker bond

Steps to Get a Freight Broker License in Florida

Getting a freight broker license in Florida requires registering with the Federal Motor Carrier Safety Administration (FMCSA). You will also need to contact an insurance provider and a surety bond agency to obtain the necessary coverage.
 
Below, we list the steps you need to complete to get a Florida freight broker license.

1. Obtain a USDOT Number

The first step in getting a freight broker license is to apply for a USDOT number from the Federal Motor Carrier Safety Administration (FMCSA). To do this, you will need to fill out an OP-1 form found on the FMCSA website, including information such as your business name, and contact information. Applying through the website means you will receive your USDOT immediately.

2. Get a Motor Carrier Number

Apply for a Motor Carrier number through the FMCSA. This number is specifically for freight brokers and is required for operating legally, and you can apply for it online through the FMCSA's Unified Registration System (URS).

3. Get Insurance

You will need to obtain and provide proof of general liability insurance. The insurance policy should provide coverage for bodily injury, property damage, and environmental restoration. There may be specific coverage limits required, so it's important to review Florida guidelines and work with an insurance provider experienced in the freight broker industry.

4. Obtain a Surety Bond

Acquire a BMC-84 surety bond with a minimum bond requirement of $75,000. The surety bond provides financial protection for shippers and carriers and ensures that you can meet your financial obligations as a freight broker. You can purchase a surety bond through a bonding company, and the cost will depend on factors such as your credit score and the desired bond amount. It is also possible to use a trust fund in place of a surety bond, however, this requires $75,000 capital to be placed in a separate account.

5. Submit the application and pay the fee

Complete the application including detailed information about your business, its legal structure, ownership details, and contact information. Pay the fee for the application but take note of the latest costs for the freight broker application, as these can vary.

FAQ

What Are the Costs Associated with Obtaining a License?

The costs associated with obtaining a freight broker license in Florida include a range of fees and expenses. Firstly, there is an application fee charged by the FMCSA . It's essential to refer to the current fee schedule provided by the FMCSA for accurate information on current costs.  
 
Additionally, you will need to purchase a freight broker surety bond or establish a trust fund to fulfill the financial responsibility requirement. The minimum bond amount required by the Federal Motor Carrier Safety Administration (FMCSA) is $75,000, and the cost of the surety bond will depend on factors like your credit history and the desired bond amount. The price of the insurance policy will depend on factors such as coverage limits, the size and nature of your business, and your claims history.

How Long Does It Take to Get a Freight Broker License in Florida?

Generally speaking, the application process for becoming a licensed freight agent may take several weeks to a few months. The duration can be influenced by factors such as application processing times, the completeness and accuracy of your application, the time required to acquire a surety bond, and your responsiveness to any requests for additional information from the FMCSA. It's advisable to start the application process well in advance of your intended start date as it allows for any potential delays and ensures a smoother transition.

How Long Is the Freight Broker License Valid in Florida and How to Renew It?

The freight broker license in Florida is typically valid for one year from the date of issuance, and to continue operating as a licensed freight broker, you must renew your license before it expires. The FMCSA  generally sends a renewal notice to the license holder a few months before the expiration date, providing instructions and requirements for the renewal process.
 
You will need to complete the renewal application, updating your business information as necessary, provide proof of insurance coverage, and pay the required renewal fee. The FMCSA may also verify your continued compliance with licensing requirements, such as maintaining liability insurance coverage and financial responsibility. It is crucial to submit the renewal application and fee on time to ensure the uninterrupted validity of your freight broker license.