Beaufort Itinerant Merchant Bond: A Comprehensive Guide
This guide provides information for insurance agents to help their customers obtain a Beaufort Itinerant Merchant Bond
At a Glance:
- Lowest Cost: $100 per year or $10 per month
- Bond Amount: $1,000
- Who Needs it: All itinerant (also known as transient) merchants operating in Beaufort, North Carolina
- Purpose: To ensure the public will receive compensation for any damages if the merchant violates licensing law
- Who Requires the Bond: The Town of Beaufort
Background
Beaufort Municipal Code 113.15 requires all itinerant merchants operating in the town to obtain a license from the town clerk. The town council enacted the license requirement to ensure that itinerant merchants engage in ethical business practices. To provide financial security for the enforcement of the licensing law itinerant merchants must purchase and maintain a $1,000 surety bond to be eligible for licensure.
What is the Purpose of the Beaufort Itinerant Merchant Bond?
Beaufort requires itinerant merchants to purchase a surety bond as part of the application process to obtain a business license. The bond ensures that the public will receive compensation for financial harm if the merchant fails to comply with the regulations set forth in Beaufort Municipal Code 113.18. Specifically, the bond protects the public in the event the merchant engages in any acts of fraud or misrepresentation. In short, the bond is a type of insurance that protects the public if the merchant acts unethically.
How Can an Insurance Agent Obtain a Beaufort Itinerant Merchant Surety Bond?
BondExchange makes obtaining a Beaufort Itinerant Merchant bond easy. Simply login to your account and use our keyword search to find the “merchant” bond in our database. Don’t have a login? Gain access now and let us help you satisfy your customers’ needs. Our friendly underwriting staff is available by phone (800) 438-1162, email or chat from 7:30 AM to 7:00 PM EST to assist you.
At BondExchange, our 40 years of experience, leading technology, and access to markets ensures that we have the knowledge and resources to provide your clients with fast and friendly service whether obtaining quotes or issuing bonds.
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Is a Credit Check Required for the Beaufort Itinerant Merchant Bond?
No, a credit check is not required for the Beaufort Itinerant Merchant bond. Because the bond is considered relatively low risk, the same low rate is offered to all itinerant merchants operating in the town, regardless of their credit history.
How Much Does the Beaufort Itinerant Merchant Bond Cost?
The Beaufort Itinerant Merchant bond costs just $100 per year or $10 per month.
Who is Required to Purchase the Bond?
Beaufort requires all itinerant merchants to purchase a surety bond as a prerequisite to obtaining a business license. To paraphrase Beaufort Municipal Code 113.01, an itinerant merchant is a person that temporarily exhibits, sells, and delivers goods within the town.
Exemptions to this definition include:
- Persons selling edible farm produce
- Persons selling seafood as long as they either caught the seafood or hold an active seafood wholesale license
- Persons exhibiting samples for future delivery
- Persons selling at a farmer’s market sponsored by a government agency
- Persons selling at yard sales
- Groups of 10 or more merchants selling at a shopping area or trade show for a period of 7 days or less
- Persons selling for nonprofit, religious, or otherwise charitable organizations
- Persons who maintain a fixed location within the county where at least 90% of their sales take place
BondExchange now offers monthly pay-as-you-go subscriptions for surety bonds. Your customers are able to purchase their bonds on a monthly basis and cancel them anytime. Learn more here.
How do Itinerant Merchants Apply for a License in Beaufort?
Itinerant merchants in Beaufort must navigate several steps to secure a license. Below are the general guidelines, but applicants should refer to the licensing statutes for details on the process.
License Period – All Beaufort Itinerant Merchant Licenses are valid for a maximum period of 90 days from the date of issuance
Step 1 – Purchase a Surety Bond
Itinerant merchants must purchase and maintain a $1,000 surety bond
Step 2 – Complete the Application
Itinerant merchants can obtain a license application by visiting the town hall at the following address:
701 Front Street
Beaufort, NC 28516
Merchants must complete the application in its entirety and submit a written response from the owner of the property where the merchant will exhibit goods allowing them to conduct business there.
How do Beaufort Itinerant Merchants Renew Their Licenses?
Itinerant merchants that wish to renew their licenses can do so at the town hall located at the following address:
701 Front Street
Beaufort, NC 28516
All Beaufort Itinerant Merchant Licenses are valid for a maximum period of 90 days from the date of issuance and may be renewed as many times as the merchant requires.
What are the Insurance Requirements for Itinerant Merchants in Beaufort?
Beaufort does not require itinerant merchants to purchase any form of liability insurance as a prerequisite to obtaining a business license. Itinerant merchants must purchase and maintain a $1,000 surety bond.
How Do Beaufort Itinerant Merchants File Their Bonds?
Itinerant merchants should deliver their completed bond forms, including the power of attorney, to the town hall at:
701 Front Street
Beaufort, NC 28516
The surety bond requires signatures from both the surety company that issues the bond and from the merchant. The surety company should include the following information on the bond form:
- Legal name and license classification of the entity/individual(s) buying the bond
- Surety company’s name and state of incorporation
- Entity requiring the bond
- Date the bond goes into effect
- Date the bond is signed
What Can Beaufort Itinerant Merchants do to Avoid Claims Against Their Bonds?
To avoid claims against their bonds, itinerant merchants must follow all license regulations in the town and ensure that they do not engage in any acts of fraud or misrepresentation.
What Other Insurance Products Can Agents Offer Itinerant Merchants in Beaufort?
Angier does not require peddlers, solicitors, or itinerant merchants to purchase any form of liability insurance. However, licensees may choose to purchase this insurance anyway. Bonds are our only business at BondExchange, so we do not issue any other types of insurance, but our agents often utilize brokers for this specific line of business. A list of brokers in this space can be found here.
How Can Insurance Agents Prospect for Beaufort Itinerant Merchant Customers?
Beaufort unfortunately does not provide a public database of active itinerant merchants in the town. We suggest contacting the town directly to obtain this information. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.