Casper Pawnshop Bond: A Comprehensive Guide
April 7, 2021
This guide provides information for insurance agents to help their customers obtain a Casper Pawnshop Bond
At a Glance:
- Average Cost: $100 per year
- Bond Amount: $1,000
- Who Needs it: All pawnshops and secondhand dealers operating in Casper, Wyoming
- Purpose: To ensure the public will receive compensation for any damages should the pawnshop violate licensing law
- Who Requires the Bond: The City of Casper
Casper Municipal Code 5-36-020 requires all pawnshops and secondhand dealers operating in the city to obtain a business license. The Casper city council enacted the licensing requirement to ensure that pawnshops engage in ethical business practices. To provide financial security for the enforcement of the licensing law, pawnshops and secondhand dealers must purchase and maintain a $1,000 surety bond to be eligible for licensure.
What is the Purpose of the Casper Pawnshop Bond?
Casper requires pawnshops and secondhand dealers 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 business fails to comply with the regulations set forth in Casper Municipal Code 5.36.050. Specifically, the bond protects the public in the event the business commits any acts of fraud or misconduct. In short, the bond is a type of insurance that protects the public if the pawnshop or secondhand dealer breaks licensing law.
How Can an Insurance Agent Obtain a Casper Pawnshop Surety Bond?
BondExchange makes obtaining a Casper Pawnshop bond easy. Simply login to your account and use our keyword search to find the “pawnshop” bond in our database. Don’t have a login? Enroll 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 Casper Pawnshop Bond?
No, a credit check is not required for the Casper Pawnshop bond. Because the bond is considered relatively low risk, the same low rate is offered to all pawnshops and secondhand dealers operating in the city, regardless of their credit history.
How Much Does the Casper Pawnshop Bond Cost?
The Casper Pawnshop bond costs just $100 per year.
Who is Required to Purchase the Bond?
Casper requires all pawnshops and secondhand dealers to purchase a surety bond as a prerequisite to obtaining a business license. To paraphrase Casper Municipal Code 5.36.010, a pawnshop is a business that issues loans at interest to individuals that leave their property, as collateral, for the pawnshop to sell. A secondhand dealer is a person that sells used property. Exemptions to this definition include:
- Flea markets
- Antique dealers
- Used furniture dealers
- Used car dealers
- Nonprofit organizations
- Auction houses
- Used clothing dealers
- Property being traded or sold on consignment
How do Pawnshops Apply for a License in Casper?
Pawnshops and secondhand dealers in Casper must navigate several steps to secure a business license. Below are the general guidelines, but applicants should refer to the licensing statutes for details on the process.
License Period – All Casper Pawnshop and Secondhand Dealer Licenses expire on December 31 of each year and must be renewed before the expiration date
Step 1 – Purchase a Surety Bond
License applicants must purchase and maintain a $1,000 surety bond
Step 2 – Complete the Application
All Casper Pawnshop and Secondhand dealer license applications should be completed online here. Applicants will be prompted to pay a fee upon submission.
How to do Casper Pawnshops and Secondhand Dealers Renew Their Licenses?
Casper pawnshops and secondhand dealers can renew their licenses online here. All Casper Pawnshop and Secondhand Dealer Licenses expire on December 31 of each year and must be renewed before the expiration date.
What are the Insurance Requirements for Pawnshops in Casper?
Casper does not require pawnshops and secondhand dealers to purchase any form of liability insurance as a prerequisite to obtaining a business license. However, they do need to purchase and maintain a $1,000 surety bond.
How Do Casper Pawnshops File Their Bonds?
Pawnshops and secondhand dealers should submit their completed bond forms, including the power of attorney, online here. 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
- Bond amount
- Date the bond goes into effect
- Date the bond is signed
What Can Casper Pawnshops do to Avoid Claims Against Their Bonds?
To avoid claims against their bonds, pawnshops and secondhand dealers in Casper must ensure that they do not engage in any acts of fraud or misconduct.
What Other Insurance Products Can Agents Offer Pawnshops in Casper?
Casper does not require pawnshops or secondhand dealers to purchase liability insurance as a prerequisite to obtaining a business license. However, most reputable businesses will 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 Casper Pawnshop Customers?
Casper conveniently provides a public database of active pawnshops and secondhand dealers in the city. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.