North Carolina Fight Promoter Bond: A Comprehensive Guide
At a Glance:
- Lowest Cost: $100 per year or $10 per month, based on the applicant’s credit history
- Bond Amount: Minimum of $10,000 (more on this later)
- Who Needs it: All licensed boxing and mixed martial arts fight promoters operating in North Carolina
- Purpose: To ensure the public will receive compensation for financial harm if the promoter commits fraud or violates any contracts
- Who Regulates Fight Promoters in North Carolina: The North Carolina Boxing Commission
Background
North Carolina Statute 143-654 requires all fight promoters operating in the state to obtain a license from the Boxing Commission. The North Carolina legislature enacted the licensing requirement to ensure that fight promoters engage in ethical business practices. To provide financial security for the enforcement of the licensing law, fight promoters must purchase and maintain a surety bond to be eligible for licensure.
What is the Purpose of the North Carolina Fight Promoter Bond?
North Carolina requires fight promoters 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 promoter fails to abide by the regulations outlined in North Carolina Statute 143-654. Specifically, the bond protects the public if the promoter engages in any acts of fraud or breaches any contracts related to a fight. In short, the bond is a type of insurance that protects the public if the promoter violates the terms of their license.
How Can an Insurance Agent Obtain a North Carolina Fight Promoter Surety Bond?
BondExchange makes obtaining a North Carolina Fight Promoter Bond easy. Simply login to your account and use our keyword search to find the “Promoter” 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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How is the Bond Amount Determined?
North Carolina Statute 143-654 grants the boxing commission the authority to determine the required bond amount on a case-by-case basis, provided that no Fight Promoter bond be less than $10,000.
Is a Credit Check Required for the North Carolina Fight Promoter Bond?
Surety companies will run a credit check on the promoter to determine eligibility and pricing for the North Carolina Fight Promoter bond. Promoters with excellent credit and work experience can expect to receive the best rates. Promoters with poor credit may be declined by some surety companies or pay higher rates. The credit check is a “soft hit”, meaning that the credit check will not affect the promoter’s credit.
How Much Does the North Carolina Fight Promoter Bond Cost?
The North Carolina Fight Promoter Bond can cost anywhere between 1% to 7.5% of the bond amount per year. Insurance companies determine the rate based on several factors including your customer’s credit score and experience. The chart below offers a quick reference for the cost of a $10,000 bond requirement.
$10,000 Fight Promoter Bond Cost
| Credit Score | Bond Cost (1 year) | Bond Cost (1 month) |
|---|---|---|
| 680+ | $100 | $10 |
| 625 – 679 | $150 | $15 |
| 575 – 624 | $375 | $38 |
| 550 – 574 | $500 | $50 |
| 500 – 549 | $750 | $75 |
Who is Required to Purchase the Bond?
North Carolina requires all boxing and mixed martial arts fight promoters to purchase a surety bond as a prerequisite to obtaining a business license. North Carolina Statute 143-651 defines a fight promoter as a person who produces, arranges, stages, holds, or gives any match involving a professional fighter in North Carolina.
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 Fight Promoters Apply for a License in North Carolina?
Fight promoters in North Carolina must navigate several steps to obtain a license. Below are the general guidelines, but promoters should refer to the licensing statutes and promoter outline for details on the process.
License Period – All North Carolina Fight Promoter Licenses expire on January 1 of each year and must be renewed before the expiration date
Step 1 – Contact the Boxing Commission
Promoters should contact the Boxing Commission before submitting their licensing application. The commission will walk the promoter through the application process and answer any questions they may have.
Step 2 – Complete the Application
All North Carolina Fight Promoter License applications should be mailed to the following address:
P.O. Box 29500
Raleigh, NC 27626
Promoters must complete the application in its entirety, and pay a $450 fee.
Step 3 – Purchase a Surety Bond
Fight promoters must purchase and maintain a surety bond in an amount determined by the Boxing Commission and at least $10,000.
How do North Carolina Fight Promoters Renew Their Licenses?
Prior to the expiration date, the Boxing Commission will send promoters a notice containing instructions on how to renew their licenses. All North Carolina Fight Promoter Licenses expire on January 1 of each year and must be renewed before the expiration date.
Are North Carolina Fight Promoters Required to Obtain a Permit?
North Carolina requires fight promoters to obtain an event permit for each fight they promote. All event permit applications should be completed and mailed to the following address:
P.O. Box 29500
Raleigh, NC 27626
Promoters must pay a permit fee corresponding to the seating capacity of the fight’s venue, as outlined below:
- $150 for venues with a seating capacity of less than
- $300 for venues with a seating capacity of 2,000 to 5,000
- $450 for venues with a seating capacity of over 5,000
What are the Insurance Requirements for Fight Promoters in North Carolina?
North Carolina requires fight promoters to obtain $2,500 worth of medical coverage for each fighter participating in events they promote. Promoters must purchase and maintain a surety bond with a minimum limit of $10,000
How Do North Carolina Fight Promoters File Their Bonds?
Fight promoters should mail their completed bond forms, including the power of attorney, to the following address:
P.O. Box 29500
Raleigh, NC 27626
The surety bond requires signatures from both the surety company that issues the bond and the promoter. 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 and address
- Bond amount
- Date the bond is signed
What Can North Carolina Fight Promoters do to Avoid Claims Made Against Their Bonds?
To avoid claims against their bonds, fight promoters in North Carolina must follow all license regulations in the state, including some of the most important issues below that tend to cause claims:
- Do not engage in any acts of fraud
- Do not breach any contracts related to a fight
What Other Insurance Products Can Agents Offer Fight Promoters in North Carolina?
Fight promoters must purchase medical coverage for all fighters participating in events that they promote. Additionally, most reputable promoters will purchase liability insurance. 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 North Carolina Fight Promoter Customers?
North Carolina unfortunately does not provide a public database of active fight promoters in the state. We suggest contacting the Boxing Commission to obtain this information. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.