Henderson Auctioneer Bond: A Comprehensive Guide
This guide provides information for insurance agents to help their customers obtain a Henderson Auctioneer bond.
At a Glance:
- Lowest Cost: $100 per year or $10 per month
- Bond Amount: $20,000
- Who Needs it: All auctioneers operating in Henderson, Nevada
- Purpose: To ensure the public is compensated for damages if the auctioneer fails to comply with licensing law
- Who Regulates Auctioneers in Henderson: The Henderson Business Licensing Department
Henderson Code of Ordinances 4.08.020 requires all auctioneers operating in the city to obtain a privileged license from the Henderson Business Licensing Department. The Henderson 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 $20,000 surety bond to be eligible for licensure.
What is the Purpose of the Henderson Auctioneer Bond?
Henderson 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 Henderson Code of Ordinances 4.08.090. Specifically, the bond protects the public if the auctioneer engages in any act of fraud, does not maintain an accurate record of transactions, or fails to accurately represent all goods up for sale. 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 Henderson Auctioneer Surety Bond?
BondExchange makes obtaining a Henderson 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? Gain access 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 Henderson Auctioneer Bond?
No, a credit check is not required for the Henderson 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 Henderson Auctioneer Bond Cost?
The Henderson Auctioneer bond costs either $100 per year or $10 per month.
Who is Required to Purchase the Bond?
Henderson requires auctioneers to purchase a surety bond as a prerequisite to obtaining a business license. To paraphrase Henderson Code of Ordinances 4.08.010, an auctioneer is a person who sells property at auction to the highest bidder.
Exemptions to this requirement include:
- Auctioneers licensed elsewhere in Clark County, Nevada
- Persons liquidating assets involved in a bankruptcy, trust, debtor, or estate
- Sales of unredeemed goods by licensed pawnbrokers
- Unclaimed property sold by common carriers or public warehouses
- Court-appointed representatives acting within the scope of their authority
- Charitable or nonprofit organizations
BondExchange now offers monthly pay-as-you-go subscriptions for surety bonds. Your customers are able to purchase their bonds on a monthly basis and cancel them anytime. Learn more here.
How Do Auctioneers Apply for a License in Henderson?
Auctioneers in Henderson must navigate several steps to obtain a license. Below are the general guidelines, but auctioneers should refer to the application form for details on the process.
License Period – All Henderson Auctioneer Licenses are valid for six months from the date of issuance and must be renewed before the expiration date.
Step 1 – Meet the Requirements
To become a licensed auctioneer in Henderson, applicants must ensure that they have all of the following items:
Step 2 – Purchase a Surety Bond
Auctioneers must purchase and maintain a $20,000 surety bond.
Step 3 – Contact the Business Licensing Department
Auctioneers should contact the Business Licensing Department before applying for a license. The department will walk the auctioneers through the application process, answer any questions they may have, and provide them with all required application forms.
Step 4 – Complete the Application
Auctioneers should submit their completed applications to the Business Licensing Department at the following address:
240 South Water Street
Henderson, NV 89015
Auctioneers must complete the application in its entirety, and submit the following items:
- Surety Bond
- $250 license fee
- $50 processing fee
- $250 investigation fee
- Full set of fingerprints
- Valid US Government issued photo ID
- Certified copy of birth certificate, passport, or Real ID
Additionally, auctioneers must submit their investigation packet (located within the application) to the Henderson Police Department at 223 Lead Street. All applicants will be subject to an FBI fingerprint-based investigation prior to being issued a license.
How do Henderson Auctioneers Renew Their Licenses?
All Henderson Auctioneer Licenses are valid for six months from the date of issuance and must be renewed before the expiration date. To renew their license, auctioneers must pay a $250 renewal fee and deliver the renewal either in person or via mail to the Business Licensing Department. Auctioneers that submit payments after the expiration date will be charged a $25 late fee.
Are Henderson Auctioneers Required to Obtain a Permit?
Auctioneers licensed in Henderson are normally not required to obtain a permit. However, auctioneers that hold auctions in any location (within the city) other than their licensed place of business must obtain a permit for each individual auction. To obtain a permit, auctioneers should contact the Business Licensing Department.
What are the Insurance Requirements for Auctioneers in Henderson?
Henderson does not require auctioneers to purchase any form of liability insurance as a prerequisite to obtaining a business license. However, auctioneers with employees are required to purchase workers’ compensation insurance. Auctioneers must purchase and maintain a $20,000 surety bond.
How Do Henderson Auctioneers File Their Bonds?
Auctioneers should submit their completed bond forms, including the power of attorney, to the City of Henderson at the following address:
240 South Water Street
Henderson, NV 89015
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 is signed
What Can Henderson Auctioneers do to Avoid Claims Made Against Their Bonds?
To avoid claims on their bonds, auctioneers in Henderson 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
- Maintain accurate records of all transactions
- Accurately represent all goods up for sale
What Other Insurance Products Can Agents Offer Auctioneers in Henderson?
Henderson 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. Auctioneers with employees must purchase workers’ compensation insurance. 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 Henderson Auctioneer Customers?
Henderson conveniently provides a public database to search for active auctioneers in the city. The database can be accessed here. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.