Elizabeth City Itinerant Merchant Bond: A Comprehensive Guide
This guide provides information for insurance agents to help their customers obtain an Elizabeth City Itinerant Merchant Bond
At a Glance:
- Average Cost: Either $100 or 0.5% of the bond amount, whichever is greater
- Bond Amount: Either $5,000 or 10% of the merchant’s anticipated sales, whichever is greater
- Who Needs it: All itinerant merchants operating in Elizabeth City, North Carolina
- Purpose: To ensure the public will receive compensation for any damages if the merchant commits fraud or fails to pay all taxes and fees
- Who Regulates Itinerant Merchants in Elizabeth City: The City Finance Director
Elizabeth City Municipal Code 113.20 requires all itinerant merchants operating in the city to obtain a permit from the City Finance Director. The city council enacted the permit requirement to ensure that merchants engage in ethical business practices. To provide financial security for the enforcement of the permitting law, itinerant merchants must purchase and maintain a surety bond to be eligible for a permit.
What is the Purpose of the Elizabeth City Itinerant Merchant Bond?
Elizabeth City requires itinerant merchants to purchase a surety bond as part of the application process to obtain a permit. The bond ensures that the public will receive compensation for financial harm if the merchant fails to comply with the regulations set forth in Elizabeth City Municipal Code 113.23. Specifically, the bond protects the public in the event the merchant engages in any acts of fraud, sells faulty merchandise, or fails to pay all required taxes and fees. In short, the bond is a type of insurance that protects the public if the merchant violates the terms of their permit.
How Can an Insurance Agent Obtain an Elizabeth City Itinerant Merchant Surety Bond?
BondExchange makes obtaining an Elizabeth City 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.
Not an agent? Then let us pair you with one!
Click the above image to find a BX Agent near you
Is a Credit Check Required for the Elizabeth City Itinerant Merchant Bond?
No, a credit check is not required for the Elizabeth City Itinerant Merchant bond. Because the bond is considered relatively low risk, the same low rate is offered to all itinerant merchants operating in the city, regardless of their credit history.
How Much Does the Elizabeth City Itinerant Merchant Bond Cost?
The Elizabeth City Itinerant Merchant bond costs either $100 or 0.5% of the bond amount, whichever is greater. BondExchange also offers monthly pay-as-you-go options for these bonds.
Who is Required to Purchase the Bond?
Elizabeth City Municipal Code 113.21 requires all persons who exhibit and sell goods in the city for a period of 180 days or less to purchase a surety bond as a prerequisite to obtaining a permit. This includes all itinerant merchants, salespersons, promoters, drummers, peddlers, and hawkers.
Exemptions to this requirement include:
- Charitable activities conducted by non-profit organizations
- Farmers’ markets
- Sales of agricultural products when anticipated sales are less than $1,000 per day
- Sales of goods to occur across state lines when payment orders are not collected in the city
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 Permit in Elizabeth City?
Itinerant merchants in Elizabeth City must navigate several steps to secure a permit. Below are the general guidelines, but applicants should refer to the permitting statutes for details on the process.
Permit Term – All Elizabeth City Itinerant Merchant Permits expire 5 days from the date of issuance
Step 1 – Purchase a Surety Bond
Itinerant merchants must purchase and maintain a surety bond with a limit of $5,000 or 10% of all anticipated sales, whichever is greater
Step 2 – Complete the Application
Itinerant merchants should mail or deliver their completed permit applications to the following address:
306 E. Colonial Avenue
Elizabeth City, NC 27909
Merchants must complete the application in its entirety, and submit the following items:
- Written consent from the owner of the land where the merchant will conduct business
- Company formation documents
- Certificate of Authority (if applicable)
- List of the goods to be sold (pricing included)
- Statement of gross receipts for all sales that have occurred within the city in the past 5 years
- List of all previous employers within the last 10 years
- $200 application fee
Do Itinerant Merchants in Elizabeth City Need to Renew Their Permits?
No, as all itinerant merchant permits expire 5 days from the date of issuance. Merchants seeking to conduct business for a period lasting longer than 5 days must apply for a new permit after each 5-day interval.
What are the Insurance Requirements for Itinerant Merchants in Elizabeth City?
Elizabeth City does not require itinerant merchants to purchase any form of liability insurance as a prerequisite to obtaining a permit. Itinerant merchants must purchase and maintain a surety bond with a limit of $5,000 or 10% of all anticipated sales, whichever is greater.
How Do Elizabeth City Itinerant Merchants File Their Bonds?
Itinerant merchants should mail or deliver their completed bond forms, including the power of attorney, to the following address:
306 E. Colonial Avenue
Elizabeth City, NC 27909
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 permit 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 Elizabeth City Itinerant Merchants do to Avoid Claims Against Their Bonds?
To avoid claims against their bonds, itinerant merchants in Elizabeth City must adhere to all permit 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 required taxes and fees
- Do not sell faulty merchandise
What Other Insurance Products Can Agents Offer Itinerant Merchants in Elizabeth City?
Elizabeth City does not require itinerant merchants to purchase any form of liability insurance as a prerequisite to obtaining a permit. 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 Elizabeth City Itinerant Merchant Customers?
Elizabeth City unfortunately does not provide a public database of active itinerant merchants in the city. We suggest contacting the city directly to obtain this information. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.