Englewood Pawnbroker Bond: A Comprehensive Guide
January 25, 2023
This guide provides information for insurance agents to help their customers obtain an Englewood Pawnbroker bond.
At a Glance:
- Average Cost: $100 per year
- Bond Amount: $5,000
- Who Needs it: All pawnbrokers and automobile pawnbrokers operating in Englewood, Colorado
- Purpose: To protect the public from financial harm if the pawnbroker violates the terms of their license
- Who Regulates Pawnbrokers in Englewood: The City of Englewood Finance Department
Englewood Code of Ordinances 5-15-2 and 5-16-2 requires all pawnbrokers and automobile pawnbrokers operating in the city to obtain a license with the city’s Finance Department before conducting business. The Englewood City Council enacted the licensing requirement to ensure that pawnbrokers engage in ethical business practices. To provide financial security for the enforcement of the licensing law, pawnbrokers and automobile pawnbrokers must purchase and maintain a $5,000 surety bond to be eligible for licensure.
What is the Purpose of the Englewood Pawnbroker Bond?
Englewood requires pawnbrokers and automobile pawnbrokers to purchase a surety bond as part of the application process to obtain a license. The bond ensures that the public will be protected from financial harm if the broker fails to comply with the regulations set forth in the Englewood Code of Ordinances 5-15-4 and 5-16-4. Specifically, the bond protects the public in the event the broker engages in any acts of fraud or mishandles a customer’s collateral. In short, the bond is a type of insurance that protects the public if the pawnbroker violates the terms of their license.
How Can an Insurance Agent Obtain an Englewood Pawnbroker Surety Bond?
BondExchange makes obtaining an Englewood Pawnbroker bond easy. Simply log in to your account and use our keyword search to find the “Pawnbroker” 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 at (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 Englewood Pawnbroker Bond?
No, a credit check is not required for the Englewood Pawnbroker bond. Because the bond is considered relatively low risk, the same low rate is offered to all pawnbrokers in the city regardless of their credit history.
How Much Does the Englewood Pawnbroker Bond Cost?
The Englewood Pawnbroker bond costs just $100 per year.
Who is Required to Purchase the Englewood Pawnbroker Bond?
Englewood requires pawnbrokers and automobile pawnbrokers to purchase a surety bond as a prerequisite to obtaining a business license. To paraphrase Englewood Code of Ordinances 5-15-1 and 5-16-1, a pawnbroker is a person regularly engaged in the business of making contracts for purchase or purchase transactions. Likewise, an automobile pawnbroker is a person regularly engaged in the business of making contracts for automobile purchase transactions.
New or used automobile dealers and secondhand dealers operating in Englewood are exempt from this bonding requirement.
How Do Pawnbrokers Apply for a License in Englewood?
Pawnbrokers and automobile pawnbrokers in Englewood must navigate several steps to secure a business license. Below are the general guidelines, but applicants should refer to the Finance Department’s website for details on the process.
First-time applicants must create an account with MUNIRevs, the city’s online business licensing portal.
License Period – All Englewood Pawnbroker Licenses expire on December 31st of each year and must be renewed before the expiration date.
Step 1 – Purchase a Surety Bond
Pawnbrokers and automobile pawnbrokers must purchase and maintain a $5,000 surety bond.
Step 2 – Complete an Application
All Englewood Pawnbroker License applications should be completed and submitted to the Finance Department online here. Pawnbrokers and automobile pawnbrokers should complete the application in its entirety and ensure they submit their original surety bond form along with proof of fire and property damage insurance.
Applicants will be subject to a police background investigation and an application fee. Contact the City of Englewood Finance Department for additional information on the application process.
How do Englewood Pawnbrokers Renew Their License?
To renew their license, pawnbrokers should submit an application to the Finance Department online via MUNIRevs. All Englewood Pawnbroker Licenses expire on December 31st of each year and must be renewed before the expiration date.
What are the Insurance Requirements for Englewood Pawnbrokers?
Englewood requires pawnbrokers and automobile pawnbrokers to purchase fire and property damage insurance for all property the broker holds by contract in the minimum amount of one-half of the property’s contracted value in case of damage or destruction. Pawnbrokers and automobile pawnbrokers must also purchase and maintain a $5,000 surety bond.
How Do Englewood Pawnbrokers File Their Bonds?
Pawnbrokers and automobile pawnbrokers should submit their completed bond forms, including the power of attorney, to the City of Englewood at the following address:
1000 Englewood Parkway
Englewood, Colorado 80110-2373
The surety bond requires signatures from both the surety company that issues the bond and from the broker. The surety company should include the following information on the bond form:
- Legal name and address of the entity/individual(s) buying the bond
- Surety company’s name, city, and state of incorporation
- Start and end date of the license term
- Date the bond goes into effect and expires
- Date the bond is signed
What Can Englewood Pawnbrokers Do to Avoid Claims Against Their Bonds?
To avoid claims against their bonds, pawnbrokers in Englewood must ensure that they:
- Do not engage in any acts of fraud
- Do not breach contracts made with consumers
- Do not mishandle customer’s collateral
What Other Insurance Products Can Agents Offer Pawnbrokers in Englewood?
Englewood requires pawnbrokers and automobile pawnbrokers to purchase fire and property damage insurance as a prerequisite to obtaining a license. 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 Englewood Pawnbroker Customers?
Englewood unfortunately does not provide a public database of active pawnbrokers or automobile pawnbrokers in the city. We suggest contacting the Finance Department for a list of licensed pawnbrokers. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.