Clinton Transient Merchant Bond: A Comprehensive Guide
This guide provides information for insurance agents to help their customers obtain a Clinton Transient Merchant Bond
At a Glance:
- Lowest Cost: $100 per year or $10 per month
- Bond Amount: $1,000
- Who Needs it: All transient merchants, itinerant merchants, and peddlers operating in Clinton, North Carolina
- Purpose: To ensure the public will receive compensation for any damages if the merchant violates licensing law
- Who Regulates Transient Merchants in North Carolina: The Clinton Police Department
Clinton Municipal Code 14-221 requires all transient merchants operating in the city to obtain a license from the Police Department. The Clinton city council enacted the licensing requirement to ensure that merchants engage in ethical business practices. To provide financial security for the enforcement of the licensing law, transient merchants must purchase and maintain a $1,000 surety bond to be eligible for licensure.
What is the Purpose of the Clinton Transient Merchant Bond?
Clinton requires transient 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 Clinton Municipal Code 14-225. Specifically, the bond protects the public in the event the merchant engages in any acts of fraud or fails to pay any fines or fees. In short, the bond is a type of insurance that protects the public if the merchant breaks licensing law.
How Can an Insurance Agent Obtain a Clinton Transient Merchant Surety Bond?
BondExchange makes obtaining a Clinton Transient 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 Clinton Transient Merchant Bond?
No, a credit check is not required for the Clinton Transient Merchant bond. Because the bond is considered relatively low risk, the same low rate is offered to all transient merchants operating in the city, regardless of their credit history.
How Much Does the Clinton Transient Merchant Bond Cost?
The Clinton Transient Merchant bond costs just $100 per year or $10 per month.
Who is Required to Purchase the Bond?
Clinton requires transient merchants, itinerant merchants, and peddlers to purchase a surety bond as a prerequisite to obtaining a business license. To paraphrase Clinton Municipal Code 14-222, a transient merchant, itinerant merchant, or peddler is a person that temporarily sells goods or services in the city either in a fixed location or via door-to-door solicitations.
Exemptions to this definition include:
- Persons selling edible farm products
- Vendors selling at flea markets
- Licensed auctioneers
- Persons offering samples for future delivery
- Yard sales
- Groups of 10 or more persons selling goods at a venue for a period of 7 days or less
- Persons selling Christmas trees and other holiday decorations
- Licensed auto dealers
- Regularly established churches, civic organizations, and brotherhoods
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 Transient Merchants Apply for a License in Clinton?
Transient merchants in Clinton 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 Clinton Transient Merchant Licenses must be renewed annually by July 1
Step 1 – Purchase a Surety Bond
Transient merchants, itinerant merchants, and peddlers must purchase and maintain a $1,000 surety bond
Step 2 – Complete the Application
All Clinton Transient Merchant License applications should be delivered to the Clinton Police Department at the following address:
222 Lisbon Street
Clinton, NC 28328
Merchants must complete the application in its entirety, and submit the following items:
- Zoning compliance form signed by an official from the Planning Office
- Written statement from the property owner where the merchant will solicit sales authorizing the use of their property (if applicable)
- Photographs of each employee
- Copy of an acceptable form of identification
- Copy of all required health permits (food trucks only)
- $25 application fee
The police department will run a background check and fingerprint report on the merchant and their employees. Merchants must pay a $14 fee per employee.
How do Clinton Transient Merchants Renew Their Business Licenses?
Transient merchants who choose to renew their licenses may do so in person at the Clinton Police Department located at the following address:
222 Lisbon Street
Clinton, NC 28328
All Clinton Transient Merchant Licenses must be renewed annually by July 1.
What are the Insurance Requirements for Transient Merchants in Clinton?
Clinton does not require transient merchants to purchase any form of liability insurance as a prerequisite to obtaining a business license. Transient merchants, itinerant merchants, and peddlers must purchase and maintain a $1,000 surety bond.
How Do Clinton Transient Merchants File Their Bonds?
Transient merchants should deliver their completed bond forms, including the power of attorney, to the Clinton Police Department at the following address:
222 Lisbon Street
Clinton, NC 28328
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 Clinton Transient Merchants do to Avoid Claims Against Their Bonds?
To avoid claims against their bonds, transient merchants in Clinton must adhere to all licensing regulations in the city, including some of the most important issues below that tend to cause claims:
- Do not engage in any acts of fraud
- Pay all fines and fees
What Other Insurance Products Can Agents Offer Transient Merchants in Clinton?
Clinton does not require transient merchants to purchase any form of liability insurance as a prerequisite to obtaining a business license. However, merchants 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 Clinton Transient Merchant Customers?
Clinton unfortunately does not provide a public database of active transient merchants in the city. We suggest contacting the Police Department directly to obtain this information. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.