Morehead City Itinerant Merchant Bond: A Comprehensive Guide
This guide provides information for insurance agents to help their customers obtain a Morehead City Itinerant Merchant Bond
At a Glance:
- Lowest Cost: $100 per year or $10 per month
- Bond Amount: $5,000
- Who Needs it: All itinerant merchants operating in Morehead City, North Carolina
- Purpose: To ensure the public will receive compensation for any damages if the merchant violates licensing law
- Who Regulates Itinerant Merchants in Morehead City: The City Manager
Morehead City Municipal Code 8-54 requires all itinerant merchants operating in the city to obtain a license from the City Manager. 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 $5,000 surety bond to be eligible for licensure.
What is the Purpose of the Morehead City Itinerant Merchant Bond?
Morehead City 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 Morehead City Municipal Code 8-54. 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 Morehead City Itinerant Merchant Surety Bond?
BondExchange makes obtaining a Morehead 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.
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Is a Credit Check Required for the Morehead City Itinerant Merchant Bond?
No, a credit check is not required for the Morehead City 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 Morehead City Itinerant Merchant Bond Cost?
The Morehead City Itinerant Merchant bond costs just $100 per year or $10 per month.
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.
Who is Required to Purchase the Bond?
Morehead City requires itinerant merchants to purchase a surety bond as a prerequisite to obtaining a business license. To paraphrase Morehead City Municipal Code 8-52, an itinerant merchant is a person, without an established retail location, that exhibits and sells goods in one location for a period of 6 months or less.
- Persons selling farm, nursery, or seafood products that they produce/catch themselves
- Persons selling any crafts or goods they created themselves
- Nonprofit charitable, educational, religious, scientific, or civic organizations
- Licensed auto dealers
- Specialty market vendors
- Persons selling at farmer’s markets
- Persons selling goods at auctions conducted by licensed auctioneers
How do Itinerant Merchants Apply for a License in Morehead City?
Itinerant merchants in Morehead City 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 Morehead City Itinerant Merchant Licenses are valid for 6 months from the date of issuance
Step 1 – Purchase a Surety Bond
Itinerant merchants must purchase and maintain a $5,000 surety bond
Step 2 – Complete the Application
Itinerant merchants can obtain a license application by visiting City Hall at the following address:
1100 Bridges Street
Morehead City, NC 28557
Merchants must complete the application in its entirety and return it to the City Manager along with the following items:
- Written permission from the owner of the property where the merchant will conduct business allowing them to exhibit goods there
- Brief description of the nature of the merchant’s business and the merchandise to be sold
- Photograph showing the merchant’s head and shoulders that was taken within 60 days of the date the application is submitted
- Proof of a sales tax reporting number obtained from the North Carolina Department of Revenue
Merchants are required to pay a $300 fee when submitting their license application.
Can Morehead City Itinerant Merchants Renew Their Licenses?
No, all Morehead City Itinerant Merchant Licenses expire 6 months from the date of issuance and cannot be renewed. Additionally, itinerant merchants may only obtain one business license every 12 months.
What are the Insurance Requirements for Itinerant Merchants in Morehead City?
Morehead City 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 $5,000 surety bond.
How Do Morehead City Itinerant Merchants File Their Bonds?
Itinerant merchants should submit their completed bond forms, including the power of attorney, to City Hall at:
1100 Bridges Street
Morehead City, NC 28557
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 Morehead City Itinerant Merchants do to Avoid Claims Against Their Bonds?
To avoid claims against their bonds, itinerant merchants in Morehead City 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 Morehead City?
Morehead City 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 Morehead City Itinerant Merchant Customers?
Morehead 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.