What is an Auctioneer Bond?
An auctioneer bond is a type of surety bond required in several states for auction professionals. This bond is a component of the licensing process for auctioneers getting their business license through the state. Auctioneers need a bond to guarantee that they will perform the duties of their job in line with state regulations. If this does not take place, a claim can be made against an auctioneer bond to offset financial losses that may have occurred.
Not all states require an auctioneer bond as part of the licensing process. However, for those that do, a bond protects the public from illegal or misleading business practices. These activities may include fraud, mismanagement of payments, inaccurate or deceptive advertising, or other misrepresentation.
What Does an Auctioneer Bond Cost?
Like other surety bonds, an auctioneer bond is priced as a percentage of the total bond amount that needs to be in place. Typically, this percentage ranges from 1 to 5%, depending on a handful of factors. Your personal credit, business financials, and past bond claim history dictate the rate you are offered. If you have bad credit, for instance, you can still get an auctioneer bond, but the percentage of the bond amount you pay may be on the higher end of the spectrum.
The amount of the bond you need will depend on the state where you perform your auctioneer duties. In certain states, a bond requirement of $10,000 may be necessary for getting your license. You only pay a percentage of the total, however. For example, if your rate is 3%, you pay $300 as your bond premium for that $10,000 auctioneer bond.
How to Get an Auctioneer Bond
Securing your auctioneer bond to meet licensing requirements is a simple process. You can complete a brief form online to get started, providing information about where your business is located and the amount of bond you need. You can also see what the cost of your auctioneer bond may be based on these details.