Yonkers Auctioneer Bond: A Comprehensive Guide
This guide provides information for insurance agents to help their customers obtain a Yonkers 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 Yonkers, New York
- Purpose: To ensure the public is compensated for damages if the auctioneer fails to comply with licensing law
- Who Regulates Auctioneers in Yonkers: The City of Yonkers Consumer Protection Bureau
Yonkers City Code 25-1 requires all auctioneers operating in the city to obtain a license from the Consumer Protection Bureau. The Yonkers 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 Yonkers Auctioneer Bond?
Yonkers 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 Yonkers City Code 25-2. Specifically, the bond protects the public if the auctioneer commits fraud or fails to provide all goods that have been paid for. 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 Yonkers Auctioneer Surety Bond?
BondExchange makes obtaining a Yonkers 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 Yonkers Auctioneer Bond?
No, a credit check is not required for the Yonkers 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 Yonkers Auctioneer Bond Cost?
The Yonkers Auctioneer bond costs either $100 per year or $10 per month.
Who is Required to Purchase the Bond?
Yonkers requires auctioneers to purchase a surety bond as a prerequisite to obtaining a business license. To paraphrase Yonkers City Code 25-1, any person who sells property to the highest bidder at auction is required to be licensed as an auctioneer.
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 Yonkers?
Auctioneers in Yonkers must navigate several steps to obtain a license. Below are the general guidelines, but applicants should refer to the application form for details on the process.
License Period – All Yonkers Auctioneer Licenses expire on May 1 of each year and must be renewed before the expiration date.
Step 1 – Contact the Consumer Protection Bureau
Auctioneers should contact the Consumer Protection Bureau before applying for a license. The bureau 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 to the following address:
City of Yonkers Consumer Protection Bureau
87 Nepperhan Avenue, Room 212
Yonkers, NY 10701
Auctioneers must complete the application in its entirety, and submit the following items:
- $375 license and background check fee
- Police Department Affidavit
- Two passport-sized headshots taken within 30 days of the application
- Surety bond
- Copy of a valid Driver’s License
- Company formation documents
All applications must be signed by a licensed notary. Additionally, auctioneers will be required to complete a background check from the Yonkers Police Department prior to receiving a license.
How Do Yonkers Auctioneers Renew Their Licenses?
To renew their license, auctioneers should contact the city’s Consumer Protection Bureau. The bureau will walk the auctioneer through the renewal process, provide them with all required forms, and answer any questions they may have. All Yonkers Auctioneer Licenses expire on May 1 and must be renewed before the expiration date.
What are the Insurance Requirements for Auctioneers in Yonkers?
Yonkers 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 Yonkers Auctioneers File Their Bonds?
Auctioneers should mail their completed bond forms, including the power of attorney, to the Consumer Protection Bureau at the following address:
87 Nepperhan Avenue, Room 212
Yonkers, NY 10701
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 Yonkers Auctioneers do to Avoid Claims Made Against Their Bonds?
To avoid claims on their bonds, auctioneers in Yonkers must follow all license regulations in the city, including some of the most important issues below that tend to cause claims:
- Provide all goods that have been paid for
- Do not breach any contracts made with consumers
- Do not engage in any acts of fraud
What Other Insurance Products Can Agents Offer Auctioneers in Yonkers?
Yonkers 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 Yonkers Auctioneer Customers?
Yonkers unfortunately does not provide a public database of active auctioneers in the city. We suggest contacting the Consumer Protection Bureau to obtain this information. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.