Greenville Itinerant Merchant Bond: A Comprehensive Guide

April 14, 2021

Greenville Itinerant Merchant Bond

This guide provides information for insurance agents to help their customers obtain a Greenville Itinerant Merchant Bond

At a Glance:

  • Average Cost: $100 per year
  • Bond Amount: $1,000
  • Who Needs it: All itinerant merchants operating in Greenville, North Carolina
  • Purpose: To ensure the public will receive compensation for any damages if the merchant violates licensing law
  • Who Regulates Itinerant Merchants in Greenville: The Greenville Police Department

Background

Greenville Municipal Code 11-11-1 requires all itinerant merchants operating in the city to obtain a license from the Police Department. The 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, itinerant merchants must purchase and maintain a $1,000 surety bond to be eligible for licensure.

What is the Purpose of the Greenville Itinerant Merchant Bond?

Greenville 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 Greenville Municipal Code 11-11-5. Specifically, the bond protects the public if 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 breaks licensing law.

Greenville Itinerant Merchant Bond Form

Greenville Itinerant Merchant Bond Form

How Can an Insurance Agent Obtain a Greenville Itinerant Merchant Surety Bond?

BondExchange makes obtaining a Greenville 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? 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 Greenville Itinerant Merchant Bond?

No, a credit check is not required for the Greenville Itinerant Merchant bond. Because the bond is considered relatively low risk, the same low rate is offered to all merchants operating in the city, regardless of their credit history.

How Much Does the Greenville Itinerant Merchant Bond Cost?

The Greenville Itinerant Merchant bond costs just $100 per year.

Who is Required to Purchase the Bond?

Greenville requires itinerant merchants to purchase a surety bond as a prerequisite to obtaining a business license. To paraphrase Greenville Municipal Code 11-11-2 an itinerant merchant is a person that temporarily exhibits and sells goods in the city.

Exemptions to this definition include:

  • Persons selling edible farm produce (fruits, vegetables, etc.)
  • Persons selling at a flea market
  • Peddlers, solicitors, and canvassers
  • Persons solely offering samples for the purposes of future delivery
  • Groups of 10 or more merchants selling at shopping areas or trade shows for 7 days or less
  • Persons selling Christmas trees and other holiday decorations
  • Licensed auctioneers

How do Itinerant Merchants Apply for a License in Greenville?

Itinerant merchants in Greenville must navigate several steps to secure a license. Below are the general guidelines, but applicants should refer to the application instructions for details on the process.

License Term – All Greenville Itinerant Merchant Licenses expire 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

All Greenville Itinerant Merchant applications (word document) should be mailed or delivered to the Police Department at:

500 S. Greene St
Greenville, NC 27834

Merchants must complete the application in its entirety, and submit the following items:

    • Sales tax reporting number obtained from the North Carolina Department of Revenue
    • Written consent of the owner of the land where the merchant will conduct business (only if business will be conducted on private property)

Merchants must pay a $374 fee when submitting their applications.

How do Greenville Itinerant Merchants Renew Their Licenses?

Merchants that wish to renew their licenses can do so by mailing or delivering a completed renewal application (word document) to the Greenville Police Department at:

500 S. Greene St
Greenville, NC 27834

All Greenville Itinerant Merchant Licenses expire 90 days from the date of issuance.

What are the Insurance Requirements for Itinerant Merchants in Greenville?

Greenville 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 Greenville Itinerant Merchants File Their Bonds?

Itinerant merchants should mail or deliver their completed bond forms, including the power of attorney, to the Greenville Police Department at the following address:

500 S. Greene St
Greenville, NC 27834

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
  • Date the bond goes into effect
  • Date the bond is signed

What Can Greenville Itinerant Merchants do to Avoid Claims Against Their Bonds?

To avoid claims against their bonds, itinerant merchants in Greenville must follow all license regulations in the city and ensure that they do not engage in any acts of fraud or misrepresentation.

What Other Insurance Products Can Agents Offer Itinerant Merchants in Greenville?

Greenville does not require itinerant 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 Greenville Itinerant Merchant Customers?

Greenville unfortunately does not provide a public database of active itinerant 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.

2022-06-08T18:16:12-04:00