Minnesota Auctioneer Bond: A Comprehensive Guide
This guide provides information for insurance agents to help their customers obtain a Minnesota Auctioneer bond.
At a Glance:
- Lowest Cost: $100 per year or $10 per month
- Bond Amount: Between $1,000 to $3,000 based on the county the auctioneer resides in
- Who Needs it: All auctioneers operating in Minnesota
- Purpose: To ensure the public is compensated for damages if the auctioneer fails to comply with licensing law
- Who Regulates Auctioneers in Minnesota: The auditor of the county where the auctioneer resides
Minnesota Statute 330.01 requires all auctioneers operating in the state to obtain a license with the auditor of the county where they reside in. The Minnesota legislature 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 surety bond to be eligible for licensure.
What is the Purpose of the Minnesota Auctioneer Bond?
Minnesota requires auctioneers to purchase a surety bond as a prerequisite to obtaining 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 Minnesota Statute 330.02. Specifically, the bond protects the public in the event the auctioneer breaches any consumer contracts or fails to pay all required taxes, fines, and fees. 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 Minnesota Auctioneer Surety Bond?
BondExchange makes obtaining a Minnesota 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.
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How is the Bond Amount Determined?
Minnesota Statute 330.02 dictates that the bond amount must range from between $1,000 to $3,000 and grants each county the authority to set the required amount themselves. Most counties have set the bond amount at $1,000, however, they may raise the limit to as much as $3,000 if they choose to do so.
Is a Credit Check Required for the Minnesota Auctioneer Bond?
No, a credit check is not required for the Minnesota Auctioneer bond. Because the bond is considered relatively low risk, the same low rate is offered to all auctioneers operating in the town, regardless of their credit history.
How Much Does the Minnesota Auctioneer Bond Cost?
The Minnesota Auctioneer bond costs either $100 per year or $10 per month.
Who is Required to Purchase the Bond?
Minnesota requires auctioneers to purchase a surety bond as a prerequisite to obtaining a business license. To paraphrase Minnesota Statute 330.06, an auctioneer is defined as any person that sells property to the highest bidder at an auction.
Exemptions to this definition include:
- Sheriffs, tax collectors, or coroners
- Sales of personal property required by a mortgage or lien
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 Minnesota?
Auctioneers must obtain a license from their county auditor before conducting business in Minnesota. Below are the general guidelines, but auctioneers should refer to the licensing statutes for details on the process.
License Period – Auctioneer Licenses in Minnesota are valid for one year from the date of issuance and must be renewed before the expiration date.
Step 1 – Meet the Requirements
To become a licensed auctioneer in Minnesota, applicants must ensure that they satisfy the following criteria:
- Be at least 18 years old
- Be a resident in the county for at least 6 months prior to submitting an application
Step 2 – Contact the County Auditor
Auctioneers should contact their local county auditor before applying for a license. The auditor will walk the auctioneer through the county’s application process, inform them of the required bond amount, and provide them with all required application forms.
Step 3 – Purchase a Surety Bond
Auctioneers must purchase and maintain a surety bond.
Step 4 – Complete the Application
Auctioneers should submit their license applications to their county auditor. Auctioneers must submit a surety bond and a $20 fee with their application.
How Do Minnesota Auctioneers Renew Their Licenses?
To renew their licenses, auctioneers in Minnesota should contact their local county auditor before the expiration date. All Minnesota Auctioneer Licenses expire one year from the date of issuance and must be renewed before the expiration date.
What are the Insurance Requirements for Auctioneers in Minnesota?
Minnesota does not require auctioneers to purchase any form of liability insurance, at least at the state level. However, the auctioneer’s county of residence may require them to do so. Auctioneers must purchase and maintain a surety bond (limits outlined above).
How Do Minnesota Auctioneers File Their Bonds?
Auctioneers should submit their completed bond forms, including the power of attorney, to their local auditor. The surety bond requires signatures from the surety company that issues the bond and the auctioneer. The surety company should include the following information on the bond form:
- The 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 being applied for
- Bond amount
- Date the bond goes into effect
- Date the bond is signed
What Can Minnesota Auctioneers do to Avoid Claims Made Against Their Bonds?
To avoid claims against their bonds, auctioneers in Minnesota must follow all license regulations in their county along with all provisions in Chapter 330 of the Minnesota Statutes. Best practices for avoiding claims include:
- Faithfully honoring all consumer contracts
- Paying all fines, taxes, and fees
What Other Insurance Products Can Agents Offer Auctioneers in Minnesota?
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 Minnesota Auctioneer Customers?
Minnesota unfortunately does not provide a public database of active auctioneers in the state. We suggest contacting local county auditors to obtain this information. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.