Home > Insurance Articles > How to Apply for An Auctioneer Surety Bond, Auctioneers Bond, or Auction Company Bond

How to Apply for An Auctioneer Surety Bond, Auctioneers Bond, or Auction Company Bond

Todays Date: September 19, 2018

An auctioneer surety bond or auction company surety bond is required by certain states in the case that individuals are subject to damage by the failure of an auctioneer or auction company—usually in the event of fraud, misrepresentation, or failure to provide services. This bond is also referred to as an “Auctioneers Bond” or “Auction Company Bond” but may be called different names depending on the state. It applies to agents, companies, representatives, or employees.

If you’re going into business as an auctioneer, you or your auction house will be required to obtain a surety bond in certain states. State governments require auctioneer surety bonds to protect consumers from any possible misconduct. The auctioneer surety bond serves to protect both consumers (auction attendees) and the obligee—in most cases the state against fraud, misrepresentation of auctioned items, or the falsification of goods for sale.

Some states require this bond—the auctioneer surety bond also serves to increase buyer confidence in auctioneering services. Both purchases and bids are protected. Alabama, Arkansas, Florida, Kansas, Louisiana, Massachusetts, Minnesota, Mississippi, Pennsylvania, and other states require this bond.

Example: Pennsylvania Auctioneer Bond

Pennsylvania auctioneer bonds are required by the PA Department of State Bureau of Professional and Occupational Affairs—the required bond amount is $5,000.

Example: Massachusetts Auctioneer Bond

Massachusetts auctioneer bonds are required by the Massachusetts Division of Standards—the required bond amount is $10,000.

The state of California requires a $20,000 auctioneer bond.

As you can see, auctioneer bond requirements vary by state government and it’s best to consult with a surety bond provider who can help you obtain the best possible price for your surety auctioneer bond, based on your particular qualifications and state requirements. Keep in mind that auctioneer bonds are subject to credit approval just like any other surety bond, and the bond application process will include a credit check and financial analysis as well. Also consider that many surety bond providers specialize in providing bonds for individuals who don’t have perfect credit.

Erica R. is a freelance writer for BondAbility. For over thirty years, BondAbility has processed surety bonds for insurance agents, serving as underwriters for major surety bond companies. Now bringing these services directly to you, BondAbility is committed to offering fast, simple, and cost effective methods for customers and agents who wish to obtain miscellaneous surety bonds, including auctioneer surety bonds. No longer just underwriters, BondAbility now works with both agents and consumers, helping them obtain surety bonds and simplifying the bond application process.

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