Pawnbrokers Bond for Pawn Shops Apply now

What’s a Pawnbrokers Bond?

A pawnbrokers bond protects the clients of pawn shops.  Each state requires a different bond form and coverage varies.  Most people refer to these bonds as fraud bonds.  They often protect against fraud, misrepresentation, and breach of contract.  In some cases, these surety bonds also protect against a pawn shop’s financial failure.

Who needs a Pawnbrokers Bond?

If your state requires your pawn shop to register with a state department, you most likely need a pawnbrokers bond.  Some states require a blanket surety bond for all of your business locations.  Others require a bond for each location.  While we offer pawn shop bonds in most states, it’s best to check with your state to see if one is needed.  Florida, California, and many other states require these bonds.

How do I apply for a Pawnbrokers Surety Bond?

  1. Complete our online Pawnbrokers Surety Bond application, or
  2. Download and complete our printable Pawnbrokers Surety Bond application, and
  3. Receive your surety bond quote in minutes!

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How much is a bond for a Pawn Shop?

Your pawnbroker surety bond cost depends on your personal credit score and the bond amount.  In most cases, your surety bond premium will range between 1-3% of the bond amount.  As an example, let’s say you need a Florida surety bond in the amount of $10,000.  Your price will be $100-$300.  However, your cost increases as your credit score decreases for most bonds.  Applicants with lower credit scores can still get a low cost bond.  The easiest way to determine your surety bond cost is to complete our surety bond application.  Most quotes are available within minutes after we receive your application.

How does a Pawnbrokers Bond work?

These bonds fall under a generic category called license bonds.  License bond forms are all different but the concept is roughly the same.  A surety bond is an insurance product which acts as a financial guarantee.  Most bonds guarantee you and your business will follow the rules set for your industry.  If not, and a covered claim occurs, the surety company pays the claim, up to the bond amount, on your behalf if you can’t or won’t pay it.  However, you and your company must pay back the surety company for all costs they incur.  All costs includes legal fees, collection costs, and other expenses the surety company incurred on your behalf.