In the state of Connecticut, pawnbrokers are licensed and regulated by the Connecticut Department of Emergency Services and Public Protection (DESPP). Per Section 3 of Public Act No. 11-100, individuals conducting business as a pawnbroker are required to file a surety bond with the DESPP before they can be issued a license. There are two types of licenses available, and each has a different bond amount that is required:
- Pawn Broker – Any person engaged in the business of loaning money on the deposit or pledge of wearing apparel, jewelry, ornaments, household goods or other person property or purchasing such property on condition of selling the same back again at a stipulate price – $2,000 Bond
- Secondhand Dealer – Any person who is primarily engaged in the business of purchasing personal property of any type from a person who is not a wholesaler, for the purpose of reselling or exchanging such property, and has physical possession of such property – $10,000 Bond
A Connecticut Pawnbroker Surety Bond guarantees that the principal (pawn broker) complies with all applicable state and federal laws governing the operation of a pawnbrokers business, and provides protection against unethical and unlawful business practices by the principal. If a harmed party files a valid claim against the bond, the surety will pay damages up to the penal sum of the bond to resolve the claim. All damages paid out by the surety must be reimbursed by the principal, including any reasonable attorney fees.
Pacific Surety is proud to offer industry low rates and quick turnaround time for quoting of Connecticut Pawnbroker Surety Bonds. Feel free to complete our simple application to obtain an approval within hours. If you have any specific questions, please contact our knowledgeable underwriting staff.