Schenectady Auctioneer Bond: A Comprehensive Guide
This guide provides information for insurance agents to help their customers obtain a Schenectady Auctioneer bond.
At a Glance:
- Lowest Cost: Between $250 to $2,500 per year or $25 to $250 per month based on the applicant’s credit history
- Bond Amount: $50,000
- Who Needs it: All auctioneers operating in Schenectady, New York
- Purpose: To ensure the public is compensated for damages if the auctioneer fails to comply with licensing law
- Who Regulates Auctioneers in Schenectady: The Schenectady City Clerk’s Office
Schenectady City Code 131-2 requires all auctioneers operating in the city to obtain a license from the City Clerk’s Office. The Schenectady 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 $50,000 surety bond to be eligible for licensure.
What is the Purpose of the Schenectady Auctioneer Bond?
Schenectady 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 Schenectady City Code 131-5. Specifically, the bond protects the public if the auctioneer breaches any consumer contracts 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.
How Can an Insurance Agent Obtain a Schenectady Auctioneer Surety Bond?
BondExchange makes obtaining a Schenectady 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 Schenectady Auctioneer Bond?
Surety companies will run a credit check on the applicant to determine eligibility and pricing for the Schenectady Auctioneer Bond. Applicants with excellent credit and work experience can expect to receive the best rates. Applicants with poor credit may be declined by some surety companies or pay higher rates. The credit check is a “soft hit”, meaning that the credit check will not affect the applicant’s credit.
How Much Does the Schenectady Auctioneer Bond Cost?
The Schenectady Auctioneer bond can cost anywhere between $250 to $2,500 per year or $25 to $250 per month. Insurance companies determine the rate based on a number of factors including your customer’s credit score and experience. The chart below offers a quick reference for the approximate bond cost on the $50,000 bond requirement.
$50,000 Auctioneer Bond Cost
|Credit Score||Bond Cost (1 year)||Bond Cost (1 month)|
|600 – 624||$750||$75|
|550 – 599||$1,250||$125|
|525 – 549||$1,500||$150|
|500 – 524||$2,500||$250|
*The credit score ranges do not include other factors that may result in a change to the annual premium offered to your customers, including but not limited to, years of experience and underlying credit factors contained within the business owner’s credit report.
Who is Required to Purchase the Schenectady Auctioneer Bond?
Schenectady requires auctioneers to purchase a surety bond as a prerequisite to obtaining a business license. To paraphrase Schenectady City Code 131-1, an auctioneer is a person that sells property to the highest bidder at auction.
Exemptions to this definition include:
- Public officials performing their official duties
- Persons selling property as required by a court order
- Executors, administers, trustees under deed of assignment, or lienors
- Nonprofit, religious, and charitable 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 Schenectady?
Auctioneers in Schenectady must navigate several steps to obtain a license. Below are the general guidelines, but applicants should refer to the licensing statutes for details on the process.
License Period – All Schenectady Auctioneer Licenses expire on January 1 of each year and must be renewed before the expiration date.
Step 1 – Contact the City Clerk’s Office
Auctioneers should contact the City Clerk’s Office before applying for a license. The clerk will email the auctioneer the required application forms, which the auctioneer must complete and return, along with a $150 licensing fee, to the following address:
City Hall, Room 107
105 Jay Street
Schenectady, NY 12305
Step 2 – Purchase a Surety Bond
Auctioneers are required to purchase and maintain a $50,000 surety bond.
How do Schenectady Auctioneers Renew Their Licenses?
To renew their license, auctioneers should contact the City Clerk’s Office. All Schenectady Auctioneer Licenses expire on January 1 and must be renewed before the expiration date.
What are the Insurance Requirements for Auctioneers in Schenectady?
Schenectady 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 $50,000 surety bond.
How Do Schenectady Auctioneers File Their Bonds?
Auctioneers should submit their completed bond forms, including the power of attorney, to the City Clerk’s Office at the following address:
City Hall, Room 107
105 Jay Street
Schenectady, NY 12305
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
- Date the bond goes into effect
- Date the bond expires
- Date the bond is signed
What Can Schenectady Auctioneers do to Avoid Claims Made Against Their Bonds?
To avoid claims on their bonds, auctioneers in Schenectady must follow all license regulations in the city, including some of the most important issues below that tend to cause claims:
- Faithfully honor all consumer contracts
- Pay all required taxes, fines, and fees
What Other Insurance Products Can Agents Offer Auctioneers in Schenectady?
Schenectady 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 Schenectady Auctioneer Customers?
Schenectady 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.