Darien Auctioneer Bond: A Comprehensive Guide
September 30, 2022
This guide provides information for insurance agents to help their customers obtain a Darien Auctioneer bond.
At a Glance:
- Average Cost: $100 per year
- Bond Amount: $5,000
- Who Needs it: All transient auctioneers operating in Darien, Illinois
- Purpose: To ensure the public is compensated for damages if the auctioneer fails to comply with licensing law
- Who Regulates Auctioneers in Darien: The Darien City Clerk’s Office
Darien City Code 3-1-1 requires transient auctioneers operating in the city to obtain a business license from the City Clerk’s Office. The Darien 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, transient auctioneers must purchase and maintain a $5,000 surety bond to be eligible for licensure.
What is the Purpose of the Darien Auctioneer Bond?
Darien requires transient auctioneers to purchase a surety bond as part of the application process to obtain a business license. The bond ensures the public will receive compensation for financial harm if the auctioneer fails to comply with the regulations set forth in Title 3, Chapter 1 of the Darien City Code. Specifically, the bond protects the public if the auctioneer engages in any acts of fraud or fails to provide all goods that have been paid for. In short, the bond is a type of insurance that protects the public if the transient auctioneer violates the terms of their license.
How Can an Insurance Agent Obtain a Darien Auctioneer Surety Bond?
BondExchange makes obtaining a Darien 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 Darien Auctioneer Bond?
No, a credit check is not required for the Darien 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 Darien Auctioneer Bond Cost?
The Darien Auctioneer bond costs just $100 per year.
Who is Required to Purchase the Darien Auctioneer Bond?
Darien requires transient auctioneers to purchase a surety bond as a prerequisite to obtaining a business license. To paraphrase the Illinois Auction License Act, a person who publicly sells property to the highest bidder at auction must be licensed as an auctioneer. A transient auctioneer is any individual who temporarily engages in the business of auctioneering.
How Do Auctioneers Apply for a License in Darien?
Auctioneers in Darien must navigate several steps to obtain a license. Below are the general guidelines, but auctioneers should contact the City Clerk for details on the process.
License Period – Darien Auctioneer Licenses can be issued for anywhere between one day to one year based on the applicant’s preference.
Step 1 – Complete the Application
Auctioneers should submit a completed application to the City Clerk’s Office at the following address:
1702 Plainfield Road
Darien, Illinois 60561
Transient auctioneers are required to submit a license fee of $30 for each day their license is active with their application.
Step 2 – Purchase a Surety Bond
Transient auctioneers must purchase and maintain a $5,000 surety bond.
How do Darien Auctioneers Renew Their License?
To renew their licenses, auctioneers should contact the City Clerk’s Office. Darien Auctioneer Licenses can be issued for anywhere between one day to one year based on the applicant’s preference.
What are the Insurance Requirements for Darien Auctioneers?
Darien does not require auctioneers to purchase any form of liability insurance as a prerequisite to obtaining an auctioneer license. However, auctioneers with employees are required to purchase workers’ compensation insurance. Transient auctioneers must purchase and maintain a $5,000 surety bond.
How Do Darien Auctioneers File Their Bonds?
Transient auctioneers should submit their completed bond forms, including the power of attorney, to the City Clerk’s Office at the following address:
1702 Plainfield Road
Darien, Illinois 60561
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 applied for
- Bond amount
- Date the bond goes into effect
- Date the bond is signed
What Can Darien Auctioneers do to Avoid Claims Made Against Their Bonds?
To avoid claims on their bonds, transient auctioneers in Darien 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
- Provide all goods which have been paid for
What Other Insurance Products Can Agents Offer Auctioneers in Darien?
Most reputable auctioneers will purchase liability insurance. Bonds are our only business at BondExchange, so we do not issue any other types of 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 Darien Auctioneer Customers?
Darien unfortunately does not provide a public database of active auctioneers. 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.