Homewood Itinerant Dealer Bond: A Comprehensive Guide
This guide provides information for insurance agents to help their customers obtain Homewood Itinerant Dealer Bonds
At a Glance:
- Lowest Cost: $100 per year or $10 per month
- Bond Amount: $5,000 or 10% percent of the dealer’s estimated sales, whichever is less
- Who Needs it: All itinerant dealers operating in Homewood, Alabama
- Purpose: To ensure the public will receive compensation for any damages should the itinerant dealer violate licensing law
- Who Regulates Itinerant Dealers in Homewood: The City of Homewood
Background
Homewood City Code 6-6. requires all itinerant dealers operating in the city to obtain a license prior to conducting business. The Homewood city council enacted the licensing laws and regulations to ensure that itinerant dealers engage in ethical business practices. To provide financial security for the enforcement of the licensing law, itinerant dealers must purchase and maintain a surety bond to be eligible for licensure.
What is the Purpose of the Homewood Itinerant Dealer Bond?
Homewood requires all itinerant 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 dealer fails to comply with the regulations set forth in Homewood City Code 6-23 f(4). Specifically, the bond protects the public in the event the dealer engages in any acts of fraud or fails to pay all taxes and fees to the city. In short, the bond is a type of insurance that protects the public if the itinerant dealer breaks licensing laws.
How Can an Insurance Agent Obtain a Homewood Itinerant Dealer Surety Bond?
BondExchange makes obtaining a Homewood Itinerant Dealer bond easy. Simply log in to your account and use our keyword search to find the “itinerant dealer” 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 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 Homewood Itinerant Dealer Bond?
No, a credit check is not required for the Homewood Itinerant Dealer bond. Because the bond is considered relatively low risk, the same low rate is offered to all itinerant dealers operating in the city, regardless of their credit history.
How Much Does the Homewood Itinerant Dealer Bond Cost?
The Homewood Itinerant Dealer bond costs just $100 per year or $10 per month.
Who is Required to Purchase the Bond?
The City of Homewood, Alabama requires all peddlers and itinerant vendors to purchase a surety bond prior to conducting business operations. To paraphrase Homewood city code 6-23, an itinerant dealer is any individual or business entity that sells goods or services without having an established place of business.
Itinerant dealers typically will only solicit business during festivals, fairs, or other public events and will oftentimes not stay in one city for longer than 4 months.
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 Dealers Apply for a License in Homewood?
Itinerant dealers in Homewood must navigate several steps to secure their license. Below are the general guidelines, but applicants should refer to the application form for details on the process.
License Period – All Homewood business licenses expire on July 1 of each year and must be renewed before the expiration date
Step 1 – Purchase a Surety Bond
Itinerant dealers must purchase and maintain a surety bond with a limit of $5,000 or no less than ten 10% percent of estimated sales, whichever is less
Step 2 – Obtain Written Permission
Itinerant dealers who plan to solicit business from the parking lot of another business must receive formal permission from the business owner to utilize their property. Dealers are required to submit verification of such authorization to the city prior to receiving a license.
Step 3 – Complete the Application
Itinerant dealers must obtain a standard business license and designate their license classification as “itinerant dealer” or “peddler”. All Homewood business license applications should be mailed or delivered to the following address:
City of Homewood
City Clerk’s Office/Business License Division
P.O. Box 59666 Homewood, AL 35259
2850 19th Street South Homewood, AL 35209
Dealers must complete the application in its entirety, and pay the following fees based on the intended duration of their license
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- Per day: $10
- Per week: $25
- Full-year: $100
How do Itinerant Dealers Renew Their Homewood Business License?
By the nature of their business, itinerant dealers don’t stick around in one location for more than a couple of months. However, if the dealer does wish to renew their license then they can do so by contacting the City Clerk’s Office/Business License Division at (205) 332-6100. All Homewood business licenses expire on July 1 of each year and must be renewed before the expiration date.
What are the Insurance Requirements for Itinerant Dealers in Homewood?
Homewood does not require itinerant dealers to obtain any form of liability insurance as a prerequisite to obtaining a business license. Itinerant dealers must purchase and maintain a surety bond with a limit of $5,000 or no less than ten 10% percent of estimated sales, whichever is less.
How Do Homewood Itinerant Dealers File Their Bond?
Itinerant dealers should mail or deliver the completed bond form, including the power of attorney, to the following address:
City Of Homewood
City Clerk’s Office/Business License Division
P.O. Box 59666 Homewood, AL 35259
2850 19th Street South Homewood, AL 35209
The surety bond requires signatures from both the surety company that issues the bond and from the dealer. The surety company should include the following information on the bond form:
- Legal name of entity/individual(s) buying the bond
- Surety company’s name
- Date the bond is signed
- Date the bond expires
What Can Homewood Itinerant Dealers Do to Avoid Claims Against Their Bond?
To avoid claims on their bond, itinerant dealers in Homewood must follow all license 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 taxes and fees owed to the city
What Other Insurance Products Can Agents Offer Itinerant Dealers in Homewood?
Homewood does not require itinerant dealers to purchase any form of liability insurance as a prerequisite to obtaining a business license. Bonds are our only business at BondExchange, so we do not issue liability 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 Homewood Itinerant Dealer Customers?
Homewood conveniently provides a public database listing all business license holders operating in the city. The database can be accessed here. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.