Auburn Auctioneer Bond: A Comprehensive Guide
September 16, 2022
This guide provides information for insurance agents to help their customers obtain an Auburn Auctioneer bond.
At a Glance:
- Average Cost: $100 per year
- Bond Amount: $1,000
- Who Needs it: All auctioneers operating in Auburn, New York
- Purpose: To ensure the public is compensated for damages if the auctioneer fails to comply with licensing law
- Who Regulates Auctioneers in Auburn: The Auburn City Clerk’s Office
Auburn City Code 109-1 requires all auctioneers operating in the city to obtain a license from the City Clerk’s Office. The Auburn City Council enacted the licensing laws and regulations to ensure that auctioneers engage in ethical business practices. To provide financial security for the enforcement of the licensing law, auctioneers must purchase and maintain a $1,000 surety bond to be eligible for licensure.
What is the Purpose of the Auburn Auctioneer Bond?
Auburn requires auctioneers to purchase a surety bond as part of the application process to obtain a business license. The bond protects the public from financial harm if the auctioneer fails to comply with the regulations set forth in Auburn City Code 109-3. Specifically, the bond protects the public if the auctioneer commits fraud or breaches consumer contracts. In short, the bond is a type of insurance that protects the public if the auctioneer violates the terms of their license.
How Can an Insurance Agent Obtain an Auburn Auctioneer Surety Bond?
BondExchange makes obtaining an Auburn Auctioneer surety bond easy. Simply login to your account and use our keyword search to find the “Auctioneer” 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 Auburn Auctioneer Bond?
No, a credit check is not required for the Auburn Auctioneer bond. Because the bond is considered relatively low risk, the same low rate is offered to all auctioneers operating in the city, regardless of their credit history.
How Much Does the Auburn Auctioneer Bond Cost?
The Auburn Auctioneer bond costs just $100 per year.
Who is Required to Purchase the Bond?
Auburn requires auctioneers to purchase a surety bond as a prerequisite to obtaining a business license. To paraphrase Auburn City Code 109-1, an auctioneer is a person that publicly sells property to the highest bidder at auction.
Exemptions to this definition include:
- Sales on behalf of a court order
- Sales of property required in estate closures
- Businesses that have been operating for at least one year selling their own property at auction (must obtain a permit and pay a fee)
How Do Auctioneers Apply for a License in Auburn?
Auctioneers in Auburn must navigate several steps to obtain a license. Below are the general guidelines, but applicants should contact the City Clerk’s Office for details on the process.
License Period – All Auburn Auctioneer Licenses expire one year from the date of issuance and must be renewed before the expiration date.
Step 1 – Purchase a Surety Bond
Auctioneers are required to purchase and maintain a $1,000 surety bond.
Step 2 – Complete the Application
Auctioneers should submit their completed applications to the City Clerk’s Office at the following address:
Memorial City Hall
24 South Street
Auburn, NY 13021
Auctioneers must complete the application in its entirety and submit the following items:
- Surety bond
- $150 license fee
- Copy of valid driver’s license or non-driver’s ID
- Signed Hold Harmless Agreement
How Do Auburn Auctioneers Renew Their Licenses?
Prior to the expiration date, the City Clerk’s Office will send the auctioneer a renewal notice with instructions on how to renew their license. All Auburn Auctioneer Licenses expire one year from the date of issuance and must be renewed before the expiration date.
What are the Insurance Requirements for Auctioneers in Auburn?
Auburn does not require auctioneers to purchase any form of liability insurance as a prerequisite to obtaining a business license. Auctioneers must purchase and maintain a $1,000 surety bond.
How Do Auburn Auctioneers File Their Bonds?
Auctioneers should submit their completed bond forms, including the power of attorney, to the Office of the City Clerk at the following address:
Memorial City Hall
24 South Street
Auburn, NY 13021
The bond requires signatures, including witness signatures, from both the surety company that issues the bond and the applicant. The surety company should include the following information on the bond form:
- Legal name of the entity/individual(s) buying the bond
- Surety company’s name and state of incorporation
- Name of the obligee and the license type being applied for
- Date the bond is signed and goes into effect
- Bond amount
What Can Auburn Auctioneers do to Avoid Claims Made Against Their Bonds?
To avoid claims on their bonds, auctioneers in Auburn must follow all license regulations in the city, including some of the most important issues below that tend to cause claims:
- Do not engage in any acts of fraud
- Faithfully honor all consumer contracts
What Other Insurance Products Can Agents Offer Auctioneers in Auburn?
Auburn does not require auctioneers to purchase any form of liability insurance as a prerequisite to obtaining a business license. However, most reputable auctioneers will obtain this insurance anyway. Bonds are our only business at BondExchange, so we do not issue liability 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 Auburn Auctioneer Customers?
Auburn unfortunately does not provide a public database of active auctioneers in the city. We suggest contacting the City Clerk’s Office to obtain this information. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.