What is an Auctioneer Bond?
If you want to become licensed in your state as an auctioneer, then you may be required to obtain an auctioneer bond.
This is a bond that protects consumers from fraud on behalf of the auctioneer or auction house, such as misrepresentation of the items auctioned or substitution of items.
One of our licensed agents will be able to help you determine if you need to purchase an auctioneer bond to become licensed in your state.
How does an auction bond work?
An auction or auctioneer bond works in the same way as any other surety bond. There are three key parts of any surety bond:
- The principal
- The obligee
- The surety
The principal is the business or individual that is required to purchase an auctioneer bond. If the auctioneer or auction house fails to meet the terms of the bond, then the surety company, the underwriter of the bond, will make a payment up to the total bond amount to the injured party. The principal will have to repay the amount that is paid out to the claimant. The obligee is the agency that requires the bond to be purchased. In the case of licensing, this is the state.
How much will I pay for an auctioneer bond?
Pricing for auctioneer bonds varies from state to state. For any surety bond, you will pay just a percentage of the total bond amount for your premium. Submit your request for a free quote today, and our team of agents will work quickly to get a quote for you as soon as possible. Once you have your quote for an auctioneer bond premium, we will walk you through the process of obtaining your surety bond so that you can complete your state licensing.