North Carolina Liquor Transportation Bond: A Comprehensive Guide

July 7, 2022

North Carolina Liquor Transportation Bond

This guide provides information for insurance agents to help their customers obtain a North Carolina Liquor Transportation bond

At a Glance:

  • Average Cost: Between $100 to $125 per year based on the applicant’s credit history
  • Bond Amount: $1,000
  • Who Needs it: Motor vehicle carriers transporting more than 8 liters of spirituous liquor across North Carolina state lines
  • Purpose: To ensure the public will receive compensation for financial harm if the carrier unlawfully transports spirituous liquor in the state
  • Who Regulates Liquor Transportation in North Carolina: The North Carolina Alcoholic Beverage Control Commission

Background

North Carolina Statute 18B-1115 requires all motor vehicle carriers seeking to transport more than 8 liters of spirituous liquor across state lines to obtain a permit with the Alcoholic Beverage Control Commission. The North Carolina legislature enacted the permitting requirement to ensure that carriers do not unlawfully transport alcoholic beverages. To provide financial security for the enforcement of the permitting requirements, motor vehicle carriers must purchase and maintain a $1,000 surety bond to be eligible for a permit.

To paraphrase North Carolina Statute 18B-101, spirituous liquor is any distilled spirit or ethyl alcohol, or any beverage containing distilled spirits or ethyl alcohol, such as wine, whiskey, rum, brandy, gin, etc.

What is the Purpose of the North Carolina Liquor Transportation Bond?

North Carolina requires motor vehicle carriers transporting more than 8 liters of spirituous liquor across state lines to purchase a surety bond as part of the application process to obtain a permit. The bond ensures that the public will receive compensation for financial harm if the carrier fails to abide by the regulations outlined in North Carolina Statute 18B-1115. Specifically, the bond protects the public if the carrier engages in any acts of fraud or otherwise unlawfully transports spirituous liquor in the state. In short, the bond is a type of insurance that protects the public if the carrier violates the terms of their permit.

North Carolina Liquor Transportation Bond Form

North Carolina Liquor Transportation Bond Form

How Can an Insurance Agent Obtain a North Carolina Liquor Transportation Surety Bond?

BondExchange makes obtaining a North Carolina Liquor Transportation Bond easy. Simply login to your account and use our keyword search to find the “Transportation” 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 North Carolina Liquor Transportation Bond?

Surety companies will run a credit check on the applicant to determine eligibility and pricing for the North Carolina Liquor Transportation bond. Applicants with excellent credit and work experience can expect to receive the best rates. Applicants 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 applicant’s credit.

How Much Does the North Carolina Liquor Transportation Bond Cost?

The North Carolina Liquor Transportation Bond can cost anywhere between $100 to $125 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 the $1,000 bond requirement.

$1,000 Liquor Transportation Bond Cost

Credit Score Bond Cost (1 year)
550+ $100
500 – 549 $125

Who is Required to Purchase the Bond?

North Carolina requires all motor vehicle carriers transporting 8 or more liters of spirituous liquor across a state lines to purchase a surety bond as a prerequisite to obtaining a commercial transportation permit.

How Do North Carolina Motor Vehicle Carriers Apply for a Commercial Transportation Permit?

Motor vehicle carriers in North Carolina must navigate several steps to obtain a commercial transportation permit. Below are the general guidelines, but carriers should refer to the application instructions for details on the process.

Step 1 – Purchase a Surety Bond

Motor vehicle carriers that transport more than 8 liters of spirituous liquor across state lines must purchase and maintain a $1,000 surety bond

Step 2 – Complete the Application

Motor vehicle carriers should mail their completed applications to the following address:

4307 Mail Service Center
Raleigh, NC 27699-4307

Do Motor Vehicle Carriers Need to Renew Their Commercial Transportation Permits?

No, motor vehicle carriers only need to obtain one commercial transportation permit per location and do not need to renew them. Commercial transportation permits allow carriers to transport spirituous liquor between the same locations an unlimited number of times. However, carriers must obtain a separate permit for each location they transport spirituous liquor to.

What are the Insurance Requirements for North Carolina Commercial Transportation Permits?

North Carolina does not require motor vehicle carriers to purchase any form of liability insurance as a prerequisite to obtaining a commercial transportation permit. However, carriers will need to have all of their vehicles insured. Carriers that transport 8 or more liters of spirituous liquor across state lines must purchase and maintain a $1,000 surety bond.

How Do North Carolina Motor Vehicle Carriers File Their Liquor Transportation Bonds?

Carriers should mail their completed bond forms, including the power of attorney, to the following address:

4307 Mail Service Center
Raleigh, NC 27699-4307

The surety bond requires signatures from the surety company that issues the bond as well as the applicant. The surety company should include the following information on the bond form:

  • Legal name and state of incorporation of the entity/individual(s) buying the bond
  • Surety company’s name and state of incorporation
  • Date the bond is signed

What Can Motor Vehicle Carriers do to Avoid Claims Against Their North Carolina Liquor Transportation Bonds?

To avoid claims against their Liquor Transportation bonds, motor vehicle carriers in North Carolina must ensure that they lawfully transport spirituous liquor, which includes:

  • Ensuring all invoices contain the North Carolina code numbers of the spirituous liquor being transported as well as the transportation routes that will be followed
  • Notify the commission of all transports
  • Ensure that drivers have all required documents on them at all times

What Other Insurance Products Can Agents Offer Motor Vehicle Carriers in North Carolina?

Most reputable motor vehicle carriers will purchase liability insurance in addition to the required auto 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 Motor Vehicle Carrier Customers?

North Carolina conveniently provides a public database of active commercial transportation permits. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.

2022-07-14T17:12:13-04:00