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GL Class Code: 18437 Stores - No Food or Drink - For Profit - NOC - Pawn shop – rated on gross sales
- Fully completed accord applications 125/126 for GL, 140 for property
- Loss runs if prior, for adding discounts.
- If new in business, informaiton regarding experience in this field
- Any contractual requirements we may need to rate for
- and if you’re looking for additional lines of coverage not noted here
This class of business is designed for pawnshops with sales under $1,000,000, square footage under 5,000 and gun sales less than 20% of total receipts.
Pawn shops are retail establishments that generate profits from two sources: short term loans with personal property held as collateral (pledged inventory) and/or sales of owned second hand merchandise, usually because the property owner defaulted on the loan (unpledged inventory). Pawn shops also may purchase property outright for retail sales.
Risks with the following characteristics are NOT acceptable:
- Owners or officers with prior convictions for illegal activities.
- Operations which have had their licenses suspended or revoked within the past five years.
- Any operation which will sell, service, repair or pawn autos, watercraft, motorcycles, recreational vehicles, or other types of motor vehicles or trailers.
- Products/Completed Operations coverage on gun sales.
- Replacement Cost Coverage on pawned property and inventory held for sale.
- Any guarantees or warranties offered.
- Gun sales MORE than 20% of total sales.
- Risks selling or pawning firearms or guns without appropriate Federal, State and/or local licenses or permits.
- Risks engaged in the service or repair of firearms.
- Jewelry exchanges.
- Risks that generate more than 20% of their sales from check cashing operations (may be separately classified using check cashing establishment class code)
- Risks that do not have a central station alarm with cellular back-up that covers all doors and windows with motion detectors within the interior of the premises.
- Risks in business less than two years without five years industry experience.
- Risks that do not store owned guns, firearms and jewelry in safes or vaults with at least a rating of TL-30 when the operation is closed.
- Long guns must be locked and cabled during open and closed business hours.
- Inventory records must be maintained on all pledged items, backed up daily with a copy stored off-site.
- Display cases must be locked when the shop is open or closed for business.