Binghamton Auctioneer Bond: A Comprehensive Guide
August 31, 2022
This guide provides information for insurance agents to help their customers obtain a Binghamton Auctioneer bond.
At a Glance:
- Average Cost: $100 per year
- Bond Amount: $5,000
- Who Needs it: All auctioneers operating in Binghamton, New York
- Purpose: To ensure the public is compensated for damages if the auctioneer fails to comply with licensing law
- Who Regulates Auctioneers in Binghamton: The Binghamton City Clerk’s Office
Binghamton Code of Ordinances 184-2 requires all auctioneers operating in the city to obtain a license from the City Clerk’s Office. The Binghamton 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 $5,000 surety bond to be eligible for licensure.
What is the Purpose of the Binghamton Auctioneer Bond?
Binghamton 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 Binghamton City Code 184-4. Specifically, the bond protects the public if the auctioneer commits fraud, fails to accurately represent all goods up for sale, or does not pay all required fines, taxes and fees. 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 a Binghamton Auctioneer Surety Bond?
BondExchange makes obtaining a Binghamton 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 Binghamton Auctioneer Bond?
No, a credit check is not required for the Binghamton 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 Binghamton Auctioneer Bond Cost?
The Binghamton Auctioneer bond costs just $100 per year.
Who is Required to Purchase the Bond?
Binghamton requires auctioneers to purchase a surety bond as a prerequisite to obtaining a business license. To paraphrase Binghamton Code of Ordinances 184-1, an auctioneer is any person who sells personal property to the highest bidder at auction.
How Do Auctioneers Apply for a License in Binghamton?
Auctioneers in Binghamton must navigate several steps to obtain a license. Below are the general guidelines, but applicants should refer to the licensing statutes for details on the process.
License Period – All Binghamton Auctioneer Licenses expire on December 31 of each year and must be renewed before the expiration date.
Step 1 – Contact the City Clerk’s Office
Auctioneers should contact the City Clerk’s Office before applying for a license. The department will walk the auctioneer through the application process, answer any questions they may have, and provide them with all required application forms.
Step 2 – Purchase a Surety Bond
Auctioneers must purchase and maintain a $5,000 surety bond.
Step 3 – Complete the Application
Auctioneers should submit their completed applications to the Office of the City Clerk at the following address:
38 Hawley Street
Binghamton, NY 13901
Auctioneers must submit a surety bond with their application.
How do Binghamton Auctioneers Renew Their Licenses?
To renew their license, auctioneers should contact the City Clerk’s Office before the expiration date. All Binghamton Auctioneer Licenses expire on December 31 and must be renewed before the expiration date.
Are Binghamton Auctioneers Required to Obtain a Permit?
Yes, auctioneers are required to obtain a permit for each auction they plan to conduct. To obtain a permit, auctioneers must complete a permit application and include a detailed list of the inventory planned to be sold. Applications should be filed with the City Clerk’s Office at least 15 days before the proposed auction date.
What are the Insurance Requirements for Auctioneers in Binghamton?
Binghamton 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 $5,000 surety bond.
How Do Binghamton Auctioneers File Their Bonds?
Auctioneers should mail or deliver their completed bond forms, including the power of attorney, to the City Clerk’s Office at the following address:
38 Hawley Street
Binghamton, NY 13901
The bond requires 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 Binghamton Auctioneers do to Avoid Claims Made Against Their Bonds?
To avoid claims on their bonds, auctioneers in Binghamton 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
- Accurately represent all goods up for sale
- Pay all required taxes, fines, and fees
What Other Insurance Products Can Agents Offer Auctioneers in Binghamton?
Binghamton 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 Binghamton Auctioneer Customers?
Binghamton 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.