How to Get Started in Military Freight with ARTRANS Performance Bonds
October 20, 2025Handling Freight Broker Non-Payment as a Carrier or Shipper
Once carriers and shippers have met their end of a contract, freight brokers are legally obligated to pay as part of their end of the contract. But what happens if you’ve completed a haul and delivered as promised, and the freight broker refuses payment or suddenly drops off the radar? Carriers and shippers know this scenario too well. The work is done, but the payment is missing, leaving your business in the red and chasing what you rightfully earned.
Fortunately, the broker’s BMC-84 Surety Bond or BMC-85 Trust Agreement exists for exactly these situations. These safeguards help the broker meet their financial obligations and ensure carriers and shippers get paid after completing their work.
Filing a Claim with PFA Transportation Insurance and Surety Services
Filing a claim is the most effective path to seek recovery. At PFA, we go beyond being a helpful resource. As the licensed claims adjuster, we manage this process on behalf of claimants. Our in-house claims staff works as the efficient and professional middleman whose only goal is to resolve valid claims quickly and fairly.
With more than 25 years experience as a leader in transportation surety, our claims staff has processed more claims than any other surety provider. Unlike other multi-line sureties, PFA only deals with broker bond claims and works diligently to protect broker contracts.
What to Gather Before You File a Surety Claim
Before starting a freight broker surety bond claim, it is important to have your ducks in a row. The trigger for filing is clear: the broker has failed to pay you for freight services within the agreed timeframe. But there are a few other steps you must take before you can file.
You cannot file a claim without first trying to collect payment directly from the broker. Attempt to contact the broker by email or phone and keep a record of your attempts. Documentation is important and can help get your claim processed faster. Keep a paper trail of emails, fax receipts, or any other indisputable proof that you reached out to collect payment.
The Claim Process, Step by Step
Filing a claim with PFA is straightforward, and our team can guide you through each step to ensure a successful outcome. We have a convenient online portal to streamline the process so you can focus on running your business.
Step 1: Start Your Claim Online
Head to our “Submit a BMC-84 or BMC85 Claim Online” page to get started. Click the “SUBMIT A BMC-84/BMC-85 CLAIM HERE” to be redirected to our claims portal. The initial submission will ask for essential information to help our team of adjusters validate your claim. Be prepared to provide this information for your claim:
- The broker’s MC Number (Reminder: the FMCSA plans to retire MC numbers in 2026).
- Your carrier MC Number and your contact information, including email and phone number.
- The date or dates the load or loads were picked up.
- The total dollar amount you are owed.
This information helps our claims adjusters process your information accurately and minimizes unnecessary delays in moving your claim forward.
Step 2: Get Your Status Update and Portal Access
Once you submit your claim, you will receive an automatic email update. If your claim qualifies, this email will include login credentials for the secure PFA Claimant Portal. This is where you will finalize your claim and upload required documents.
Step 3: Finalize Your Submission in the Portal
Log in to the PFA Claimant Portal using your credentials. For each load, you must upload these documents:
- The rate confirmation (Ratecon)
- The bill of lading (BOL) or other proof of delivery (POD)
- The carrier’s invoice
- Signed broker-carrier agreement (if applicable)
- Any other information (photos, emails, text messages, etc.) you would like us to review
Important: Your claim is not considered complete until legible copies of supporting documents have been uploaded. The documents help our team verify that the work was completed per contract terms and the agreed amount for each load. Once everything is submitted, your claim moves to the investigation phase.
What to Expect After you Submit: Investigation and Decision Process
After you hit submit, your claim goes to PFA’s in-house team of claim adjusters. Our role is to verify the details and communicate with the broker. In most cases, our first step is to notify the broker that a claim has been filed against their surety bond or trust.
Best-Case Scenario
In about 95 percent of cases, the broker resolves the claim quickly once they are notified. The broker usually pays the claimant directly to avoid further escalation. This direct payment is the fastest and easiest resolution, and everyone can move forward with their business.
When the Claim Needs to Be Escalated
Sometimes, however, issues arise. If the broker stops communicating or refuses to pay, escalation is necessary. In certain situations, PFA will recommend that the surety company issue a “Notice of Cancellation.” The cancellation becomes effective with the FMCSA 30 days after being filed. The filing triggers a 60-day period where the surety must accept claims against the bond or trust, followed by a 30-day period to pay all valid claims.
This process ensures all claimants have a fair opportunity to file, and that the bond or trust is distributed according to federal guidelines.
Understanding the Payout Scenarios
It is important to understand what happens next will depend on the total value of all claims filed against the broker’s bond or trust.
Full Claim Payout
If the total value of valid claims does not exceed the $75,000 surety instrument, then every claimant receives the full amount of their claim. This is the ideal outcome. Each party’s loss is fully covered by the bond or trust, and the broker’s obligation is satisfied.
Pro Rata Payout
If the total of valid claims exceeds the $75,000 penal sum, then each claimant receives a percentage of what they are owed. For example, if total claims amount to $100,000, then each claimant will receive seventy-five percent of their claim value. This distribution is called a pro rata payout. While it is not ideal, it is a fair way to share the available funds among all claimants and what is set forth by law.
After submitting your claim, you must update PFA right away if you receive payment from another source, such as the broker or shipper. This allows us to adjust your claim and ensures the distribution remains fair for all parties.
Claimants may also have other avenues for recovery. In certain cases, you can pursue payment from the shipper or consignee directly. Legal counsel in your state can advise you on these options, and it is wise to consider every possible path to recovering your money.
You Have an Expert Partner in PFA
PFA Transportation Insurance & Surety Services is more than just a portal. We have been a licensed claims adjustor company since 1998, exclusively specializing in transportation since our founding. Our dedicated, in-house claims department works exclusively with broker bond claims to protect broker contracts. As the industry leader in transportation surety, we process tens of thousands of freight bond claims each year.
Do not wait to get paid. If a broker has failed to settle your invoice, the expert claims team at PFAprotects.com is ready to help. Click here to start your claim now and let us go to work for you.
PFA is authorized by the FMCSA as a Financial Institution to issue BMC-85 Property Broker Trust Fund Agreements pursuant to 49 CFR § 387.307 under Filer No: 22512. PFA Transportation Insurance & Surety Services is an Insurance Producer and Claims Adjuster licensed in all 50 states – NIPR No. 171225521, CA License No. 0M18074 and a Third Party Administrator – UT License No. 616391.1, CA License No. 0M18074 and a Third Party Administrator – UT License No. 616391.
