Syracuse Auctioneer Bond: A Comprehensive Guide
This guide provides information for insurance agents to help their customers obtain a Syracuse Auctioneer bond.
At a Glance:
- Lowest Cost: $100 per year or $10 per month
- Bond Amount: $5,000
- Who Needs it: All auctioneers operating in Syracuse, New York
- Purpose: To ensure the public is compensated for damages if the auctioneer fails to comply with licensing law
- Who Regulates Auctioneers in Syracuse: The Syracuse Central Permit Office
Syracuse City Code 9-2 requires all auctioneers operating in the city to obtain a license from the Syracuse Central Permit Office. The Syracuse 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 Syracuse Auctioneer Bond?
Syracuse 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 Syracuse City Code 9-5. Specifically, the bond protects the public if the auctioneer commits fraud, does not pay all required taxes and fees, or fails to accurately represent the 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 Syracuse Auctioneer Surety Bond?
BondExchange makes obtaining a Syracuse 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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Is a Credit Check Required for the Syracuse Auctioneer Bond?
No, a credit check is not required for the Syracuse 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 Syracuse Auctioneer Bond Cost?
The Syracuse Auctioneer bond costs either $100 per year or $10 per month.
Who is Required to Purchase the Bond?
Syracuse requires auctioneers to purchase a surety bond as a prerequisite to obtaining a business license. To paraphrase Syracuse City Code 9-2, an auctioneer is a person that publicly sells property to the highest bidder.
Exemptions to this definition include:
- Sales of unredeemed goods by licensed pawnbrokers
- Executors or administrators in estates, wills, or trusts
- Sales made on behalf of the court or government
- Sales of property related to a clearance of title taken under a conditional sales contract
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 Syracuse?
Auctioneers in Syracuse must navigate several steps to obtain a license. Below are the general guidelines, but applicants should refer to the Central Permit Office’s licensing page for details on the process.
License Period – All Syracuse Auctioneer Licenses expire on December 31 of each year and must be renewed before the expiration date.
Step 1 – Contact the Central Permit Office
Auctioneers should contact the Central Permit Office before applying for a license. The department will walk the auctioneer through the application process, answer any questions they may have, and provide them with all required application forms.
Step 2 – Purchase a Surety Bond
Auctioneers must purchase and maintain a $5,000 surety bond.
Step 3 – Complete the Application
Auctioneers should submit their completed applications, including a $100 license fee, to the following address:
Central Permit Office
City Hall Commons – Room 101
201 E. Washington Street, Room 101
Syracuse, NY 13202
Auctioneers must submit a surety bond with their application. Applicants that owe any money to the city will be ineligible for licensure. Additionally, some applicants may be subjected to a background check.
How do Syracuse Auctioneers Renew Their Licenses?
To renew their licenses, auctioneers in Syracuse should contact the city’s Central Permit Office. The department will walk the auctioneer through the renewal process, provide them with all required forms, and answer any questions they may have. All Syracuse Auctioneer Licenses expire on December 31 of each year and must be renewed before the expiration date.
What are the Insurance Requirements for Auctioneers in Syracuse?
Syracuse 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 Syracuse Auctioneers File Their Bonds?
Auctioneers should mail or deliver their completed bond forms, including the power of attorney, to the Central Permit Office at the following address:
Central Permit Office
City Hall Commons – Room 101
201 E. Washington Street
Syracuse, NY 13202
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 being applied for
- Bond amount
- Date the bond is signed
What Can Syracuse Auctioneers do to Avoid Claims Made Against Their Bonds?
To avoid claims on their bonds, auctioneers in Syracuse 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
- Pay all required taxes and fees
- Accurately represent all goods up for sale
What Other Insurance Products Can Agents Offer Auctioneers in Syracuse?
Syracuse 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 Syracuse Auctioneer Customers?
Syracuse unfortunately does not provide a public database of active auctioneers in the city. We suggest contacting the Central Permit Office to obtain this information. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.