Pursuant to state law, a pawn operator can file an Ohio pawnbroker bond to meet certain financial stability (liquidity) requirements as enforced by the Superintendent of Financial Institutions. ORC 4727.20 (2) provides the surety bond mechanism. A pawnbroker may provide "a surety bond issued by a bonding company or insurance company authorized to do business in Ohio. The surety bond shall be in favor of the Superintendent of Financial Institutions and in the penal sum of at least fifty thousand dollars ($50,000). The licensee shall file a copy of the Ohio pawnbroker bond with the Superintendent. The bond shall be for the exclusive benefit of any person injured by a licensee's violation of this chapter. The aggregate liability of the surety for any and all breaches of the conditions of the bond shall not exceed the penal sum of the bond."
If at any time the penal sum of the surety bond is reduced by one or more claims then the pawnbroker must provide either a new Ohio pawnbroker bond or an endorsement so that the bond or bonds equal the sum of $50,000. The liability on the surety company for any act or omission that occurs during the term of the surety bond must run for at least two years after the date on which the surety bond is terminated or canceled.
A license application may be downloaded here or you can contact the Superintendent directly at:
77 South High Street
Columbus, OH 43215
Ohio surety bond leader, Surety One, Inc. is a specialist in the bonding needs of the pawnbroker / pawn shop industry. We offer both surety and fidelity bonds in support of pawn operations in all fifty states, Puerto Rico and the U.S. Virgin Islands. Would you like to discuss the application procedure or costs? Call (800) 373-2804, email us at Underwriting@SuretyOne.com, or click here for live chat. An Ohio pawnbroker bond application can also be found on this same page, upper right full screen or below on mobile devices.
Surety bond application review and quoting are free of charge. There is no obligation to purchase.