Selma Itinerant Merchant Bond: A Comprehensive Guide
April 21, 2021
This guide provides information for insurance agents to help their customers obtain a Selma Itinerant Merchant Bond
At a Glance:
- Average Cost: $100 per year
- Bond Amount: $1,000
- Who Needs it: All itinerant merchants operating in Selma, North Carolina
- Purpose: To ensure the public will receive compensation for any damages if the merchant violates licensing law
- Who Requires the Bond: The Town of Selma
Selma Municipal Code 6-126 requires all itinerant merchants operating in the town to obtain a business license. The town 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 $1,000 surety bond to be eligible for licensure.
What is the Purpose of the Selma Itinerant Merchant Bond?
Selma 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 Selma Municipal Code 6-129. 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 Selma Itinerant Merchant Surety Bond?
BondExchange makes obtaining a Selma 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? 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 Selma Itinerant Merchant Bond?
No, a credit check is not required for the Selma Itinerant Merchant bond. Because the bond is considered relatively low risk, the same low rate is offered to all merchants operating in the town, regardless of their credit history.
How Much Does the Selma Itinerant Merchant Bond Cost?
The Selma Itinerant Merchant bond costs just $100 per year.
Who is Required to Purchase the Bond?
Selma requires itinerant merchants to purchase a surety bond as a prerequisite to obtaining a business license. To paraphrase Selma Municipal Code 6-106, an itinerant merchant is a person that temporarily exhibits and sells goods within the town.
Exemptions to this definition include:
- Persons selling edible farm produce (fruits, vegetables, etc)
- Persons selling at specialty markets
- Persons solely exhibiting samples for orders that will be delivered at a future date
- Groups of 10 or more persons selling at a shopping center or trade show for a period of 7 days or less
How do Itinerant Merchants Apply for a License in Selma?
Itinerant merchants in Selma 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 Selma Itinerant Merchant Licenses are valid for a maximum of 90 days from the date of issuance
Step 1 – Purchase a Surety Bond
Itinerant merchants must purchase and maintain a $1,000 surety bond
Step 2 – Complete the Application
To obtain a license application, itinerant merchants in Selma should contact the Town Clerk’s Office. Merchants should return their completed applications to the clerk’s office along with the following items:
- Proof of a sales tax reporting number obtained from the North Carolina Department of Revenue
- Written permission from the owner of the property where the merchant will conduct business allowing them to exhibit goods there
- Building compliance permit, obtained from the town building inspector, stating that the merchant may conduct sales in their proposed location
Can Selma Itinerant Merchants Renew Their Licenses?
Yes, merchants that wish to renew their licenses can do so an unlimited amount of times by contacting the Town Clerk’s Office and completing a renewal application. All Selma Itinerant Merchant Licenses are valid for a maximum of 90 days from the date of issuance.
What are the Insurance Requirements for Itinerant Merchants in Selma?
Selma 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 $1,000 surety bond.
How Do Selma Itinerant Merchants File Their Bonds?
Itinerant merchants should submit their completed bond forms, including the power of attorney, to the Town Clerk’s Office at:
114 North Raiford St
Selma, NC 27576
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 Selma Itinerant Merchants do to Avoid Claims Against Their Bonds?
To avoid claims against their bonds, itinerant merchants in Selma must follow all license regulations in the town and ensure they do not engage in any acts of fraud or misrepresentation.
What Other Insurance Products Can Agents Offer Itinerant Merchants in Selma?
Selma 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 Selma Itinerant Merchant Customers?
Selma unfortunately does not provide a public database of active itinerant merchants in the town. We suggest contacting the Town Clerk’s Office directly to obtain this information. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.