Denver Auctioneer Bond: A Comprehensive Guide

August 2, 2022

Denver Auctioneer Bond

This guide provides information for insurance agents to help their customers obtain a Denver Auctioneer bond.

At a Glance:

  • Average Cost: $100 per year
  • Bond Amount: $2,000
  • Who Needs it: All auctioneers operating in Denver, Colorado
  • Purpose: To ensure the public is compensated for damages if the auctioneer fails to comply with licensing law
  • Who Regulates Auctioneers in Denver: The Denver Department of Excise and Licenses

Background

Denver Municipal Code 9-12 requires all auctioneers operating in the city to obtain a license from the Department of Excise and Licenses. The Denver 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 $2,000 surety bond to be eligible for licensure.

What is the Purpose of the Denver Auctioneer Bond?

Denver 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 Denver Municipal Code 9-18. Specifically, the bond protects the public from damages if the auctioneer engages in acts of fraud such as fictitious bidding or misrepresenting goods, or fails to pay all fines or penalties levied against them. In short, the bond is a type of insurance that protects the public if the auctioneer violates the terms of their license.

Denver Auctioneer Bond Form

How Can an Insurance Agent Obtain a Denver Auctioneer Surety Bond?

BondExchange makes obtaining a Denver 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 Denver Auctioneer Bond?

No, a credit check is not required for the Denver 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 Denver Auctioneer Bond Cost?

The Denver Auctioneer bond costs just $100 per year.

Who is Required to Purchase the Bond?

Denver requires auctioneers to purchase a surety bond as a prerequisite to obtaining a business license. To paraphrase Denver Municipal Code 9-1, an auctioneer is a person that publicly sells property to the highest bidder.

Exemptions to this definition include:

  • Charitable or nonprofit organizations
  • 4-H Club auctions
  • Banks and trust companies
  • Persons liquidating assets involved in a bankruptcy, trust, debtor, or estate
  • Sales limited to retail or wholesale dealers
  • Court-appointed representatives acting within the scope of their authority as well as trustees under the provisions of a deed of trust
  • Sales conducted by the Western Stock Show Association at the National Western Stock Show
  • Sales conducted at a public stockyard

How Do Auctioneers Apply for a License in Denver?

Auctioneers in Denver must navigate several steps to obtain a license. Below are the general guidelines, but applicants should refer to the application checklist for details on the process.

License Period – All Denver Auction Licenses expire annually and must be renewed before the expiration date.

Step 1 – Purchase a Surety Bond

Auctioneers must purchase and maintain a $2,000 surety bond.

Step 2 – Complete the Application

Auctioneers can either submit their completed applications online here, or mail them to the following address:

City and County of Denver
Department of Excise and Licenses
201 W. Colfax Ave., Dept. 206
Denver, CO 80202

Auctioneers must complete the application in its entirety, and submit the following items:

Auctioneers who apply online or in-person must wait for an invoice provided by the department before paying the $225 licensing fee.

How do Denver Auctioneers Renew Their Licenses?

Auctioneers have the option to renew their licenses online here, or submit their completed applications to the following address:

City and County of Denver
Department of Excise and Licenses
201 W. Colfax Ave., Dept. 206
Denver, CO 80202

All Denver Auction Licenses expire annually and must be renewed before the expiration date. Auctioneers must pay a $200 fee when renewing their licenses. There is a 90-day grace period from the expiration date when licenses can be renewed with additional penalty fees. After 90 days, auctioneers must apply for a new license.

What are the Insurance Requirements for Auctioneers in Denver?

Denver 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 $2,000 surety bond.

How Do Denver Auctioneers File Their Bonds?

Auctioneers should submit their completed bond forms, including the power of attorney, to the Department of Excise and Licenses at the following address:

201 W. Colfax Ave., Dept. 206
Denver, CO 80202

The surety bond requires signatures from the surety company that issues the bond and the applicant. The surety company should include the following information on the bond form:

  • Legal name and address of the entity/individual(s) buying the bond
  • Surety company’s name, city, and state of incorporation
  • Year the bond is effective for
  • Date the bond is signed
  • Date the bond expires

What Can Denver Auctioneers do to Avoid Claims Made Against Their Bonds?

To avoid claims against their bonds, auctioneers in Denver must ensure that they comply with all provisions set forth in Chapter 9 of the Denver Municipal Code. Best practices for avoiding claims include:

  • Accurately represent the goods up for sale
  • Do not engage in any acts of fraud
  • Pay all fines and fees on time and in full

What Other Insurance Products Can Agents Offer Auctioneers in Denver?

Denver does not require auctioneers to purchase any form of liability insurance as a prerequisite to obtaining a business license. However, most 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 Denver Auctioneer Customers?

Denver unfortunately does not provide a public database of active auctioneers in the city. We suggest contacting the Business Licensing Center to obtain this information. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.

2022-08-02T15:05:34-04:00