Buffalo Auctioneer Bond: A Comprehensive Guide
August 2, 2022
This guide provides information for insurance agents to help their customers obtain a Buffalo Auctioneer bond.
At a Glance:
- Average Cost: $100 per year
- Bond Amount: $5,000
- Who Needs it: All auctioneers operating in Buffalo, New York
- Purpose: To ensure the public is compensated for damages if the auctioneer fails to comply with licensing law
- Who Regulates Auctioneers in Buffalo: The Buffalo Department of Permit and Inspection Services
Buffalo City Code 81-2 requires all auctioneers operating in the city to obtain a license from the Department of Permit and Inspection Services. The Buffalo 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 Buffalo Auctioneer Bond?
Buffalo 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 Buffalo City Code 81-4. Specifically, the bond protects the public if the auctioneer commits fraud, does not pay all required taxes and fees, or fails to maintain accurate records of transactions. 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 Buffalo Auctioneer Surety Bond?
BondExchange makes obtaining a Buffalo 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 Buffalo Auctioneer Bond?
No, a credit check is not required for the Buffalo 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 Buffalo Auctioneer Bond Cost?
The Buffalo Auctioneer bond costs just $100 per year.
Who is Required to Purchase the Bond?
Buffalo requires auctioneers to purchase a surety bond as a prerequisite to obtaining a business license. To paraphrase Buffalo City Code 18-1, an auctioneer is a person that publicly sells property to the highest bidder.
Exemptions to this definition include:
- Sales of livestock
- Sales of property under a lien or property taken under a conditional sales contract
- Sales of personal property at a public convention
- Sales made on behalf of the court or government
How Do Auctioneers Apply for a License in Buffalo?
Auctioneers in Buffalo 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 Buffalo Auctioneer Licenses expire on June 1 of each year and must be renewed before the expiration date.
Step 1 – Purchase a Surety Bond
Auctioneers must purchase and maintain a $5,000 surety bond.
Step 2 – Complete the Application
Auctioneers should submit their completed applications, including a $400 license fee, to the following address:
Office of Licenses
65 Niagara Square, Room 301
Buffalo, NY 14202
Auctioneers must complete the application in its entirety, and submit the following items:
- Surety Bond
- Acknowledge Forms
- Inventory of Auction Sale
How do Buffalo Auctioneers Renew Their Licenses?
All Buffalo Auction Licenses expire on June 1 and must be renewed before the expiration date. To renew their license, auctioneers should contact the city’s Department of Permit and Inspection Services. The department will walk the auctioneer through the renewal process, provide them with all required forms, and answer any questions they may have.
What are the Insurance Requirements for Auctioneers in Buffalo?
Buffalo 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 Buffalo Auctioneers File Their Bonds?
Auctioneers should mail their completed bond forms, including the power of attorney, to the following address:
65 Niagara Square, Room 301
Buffalo, NY 14202
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
- Date the bond is signed
What Can Buffalo Auctioneers do to Avoid Claims Made Against Their Bonds?
To avoid claims on their bonds, auctioneers in Buffalo 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
- Pay all required taxes and fees
- Maintain accurate records of all transactions
What Other Insurance Products Can Agents Offer Auctioneers in Buffalo?
Buffalo 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 Buffalo Auctioneer Customers?
Buffalo unfortunately does not provide a public database of active auctioneers in the city. We suggest contacting the Department of Permit and Inspection Services to obtain this information. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.