Laurinburg Itinerant Merchant Bond: A Comprehensive Guide
This guide provides information for insurance agents to help their customers obtain a Laurinburg Itinerant Merchant Bond
At a Glance:
- Average Cost: Either $100 or 0.5% of the bond amount, whichever is greater
- Bond Amount: Determined on a case by case basis (more on this later)
- Who Needs it: All itinerant merchants operating in Laurinburg, North Carolina
- Purpose: To ensure the public will receive compensation for any damages if the merchant violates licensing law
- Who Requires the Bond: The City of Laurinburg
Background
Laurinburg Municipal Code 8-72 requires all itinerant merchants operating in the city to obtain a business license. The Laurinburg 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 surety bond to be eligible for licensure.
What is the Purpose of the Laurinburg Itinerant Merchant Bond?
Laurinburg 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 Laurinburg Municipal Code 8-74. Specifically, the bond protects the public in the event 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 violates licensing law.
How Can an Insurance Agent Obtain a Laurinburg Itinerant Merchant Surety Bond?
BondExchange makes obtaining a Laurinburg Itinerant Merchant bond easy. Simply log in to your account and use our keyword search to find the “itinerant” 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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How is the Bond Amount Determined?
Laurinburg Municipal Code 8-74 grants the city the authority to set the required bond amount as they see fit. Contact the city at (910) 276-8527 for information on the current bond amount for itinerant merchants.
Is a Credit Check Required for the Charlotte Land Development Services Bond?
No, a credit check is not required for the Laurinburg 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 Laurinburg Itinerant Merchant Bond Cost?
The Laurinburg Itinerant Merchant bond costs either $100 or 0.5% of the bond amount per year, whichever is greater. BondExchange also offers monthly pay-as-you-go options for these bonds, starting at $10 per month.
Who is Required to Purchase the Bond?
Laurinburg requires itinerant merchants to purchase a surety bond as a prerequisite to obtaining a business license. To paraphrase Laurinburg Municipal Code 8-71, an itinerant merchant is a person who temporarily exhibits and sells goods within the city.
Exemptions to this definition include:
- Persons selling at flea markets
- Persons selling at yard sales
- Groups of 10 or more persons selling at shopping areas or trade shows
- Traveling salespersons
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 License in Laurinburg?
Itinerant merchants in Laurinburg must navigate several steps to secure a license. Below are the general guidelines, but applicants should refer to the licensing statutes for details on the process.
License Period – All Laurinburg Itinerant Merchant Licenses are valid for one year from the date of issuance
Step 1 – Complete the Application
To obtain a license application, merchants should request one from the City Planning and Zoning Department by calling (901) 276-8324 or visiting the department in person at the following address:
303 West Church Street
910-276-8324
Merchants must return a completed application, including the required fee, to the department. The application must contain the following items:
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- Description of the goods to be sold
- Names and addresses of all persons with managerial duties over the business while it is serving Laurinburg residents
- Proof of a state sales tax reporting number issued by the North Carolina Department of Revenue
- List of locations within the city where the merchant will conduct business
- Permission from the property owner where business will be conducted
Step 2 – Purchase a Surety Bond
Merchants must purchase and maintain a surety bond and will be informed of the required limit when obtaining their application.
What are the Liability Insurance Requirements for Itinerant Merchants in Laurinburg?
Laurinburg does not require itinerant merchants to purchase any form of liability insurance as a prerequisite to obtaining a business license.
How Do Laurinburg Itinerant Merchants File Their Bonds?
Itinerant merchants should submit their completed bond forms, including the power of attorney, to the Planning and Zoning Department at:
303 West Church Street
910-276-8324
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
- Date the bond goes into effect
- Date the bond is signed
What Can Laurinburg Itinerant Merchants do to Avoid Claims Against Their Bonds?
To avoid claims against their bonds, itinerant merchants in Laurinburg must follow all license regulations in the city and ensure they do not engage in any acts of fraud or misrepresentation.
What Other Insurance Products Can Agents Offer Itinerant Merchants in Laurinburg?
Laurinburg does not require itinerant merchants to purchase any form of liability insurance. However, some 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 Laurinburg Itinerant Merchant Customers?
Laurinburg unfortunately does not provide a public database of active itinerant merchants in the city. We suggest contacting the Planning and Zoning Department directly to obtain this information. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.