Fulton Auctioneer Bond: A Comprehensive Guide

September 19, 2022

Fulton Auctioneer Bond

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

At a Glance:

  • Average Cost: $100 per year
  • Bond Amount: $5,000
  • Who Needs it: All auctioneers operating in Fulton, New York
  • Purpose: To ensure the public is compensated for damages if the auctioneer fails to comply with licensing law
  • Who Regulates Auctioneers in Fulton: The Fulton City Clerk’s Office

Background

Fulton City Code 223-1 requires all auctioneers operating in the city to obtain a license from the City Clerk’s Office. The Fulton 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 Fulton Auctioneer Bond?

Fulton requires auctioneers to purchase a surety bond as part of the application process to obtain a business license. The bond ensures that the public will receive compensation for financial harm if the auctioneer fails to comply with the regulations set forth in Fulton City Code 232-2. 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.

Fulton Auctioneer Bond Form

How Can an Insurance Agent Obtain a FultonAuctioneer Surety Bond?

BondExchange makes obtaining a Fulton 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 Fulton Auctioneer Bond?

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

The Fulton Auctioneer bond costs just $100 per year.

Who is Required to Purchase the Bond?

Fulton requires auctioneers to purchase a surety bond as a prerequisite to obtaining a business license. To paraphrase Fulton City Code 223-1, an auctioneer is a person that publicly sells property to the highest bidder at auction.

How Do Auctioneers Apply for a License in Fulton?

Auctioneers in Fulton 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 Fulton Auctioneer Licenses expire on January 1 of each year and must be renewed before the expiration date.

Step 1 – Purchase a Surety Bond

Auctioneers are required to purchase and maintain a $5,000 surety bond.

Step 2 – Go to the City Clerk’s Office

To complete a license application, auctioneers should visit the City Clerk’s Office at the following address:

City of Fulton Municipal Building
141 S. First Street
Fulton, NY 13069

The clerk will walk the auctioneer through the application process, answer any questions they may have, and provide them with a paper application form which should be completed while at the office. Auctioneers must submit a surety bond and a $200 license fee with their application.

How Do Fulton Auctioneers Renew Their Licenses?

To renew their license, auctioneers should contact the City Clerk’s Office. All Fulton Auctioneer Licenses expire on January 1 and must be renewed before the expiration date.

What are the Insurance Requirements for Auctioneers in Fulton?

Fulton 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 Fulton 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:

City of Fulton Municipal Building
141 S. First Street
Fulton, NY 13069

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
  • Date the bond goes into effect
  • Date the bond is signed
  • Bond amount

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

To avoid claims on their bonds, auctioneers in Fulton 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 Fulton?

Fulton 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 Fulton Auctioneer Customers?

Fulton 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.

2022-09-19T12:27:57-04:00