What Is an Ohio Auctioneer Bond?
Obtaining an auctioneer license in most states entails posting an auctioneer bond. The same applies for getting an Ohio auctioneer license.
This Ohio surety bond that you provide as a part of the process is needed to guarantee your legal compliance. If you transgress from your obligations as an auctioneer or fail to abide by applicable state law, you may get a bond claim. That’s how harmed parties can seek a financial compensation.
Your surety bond is a contract between three entities. The principal that needs to post the bond is your company. The Ohio of Department of Agriculture is the obligee that imposes the requirement. The surety, which provides the bond, is the third party.
Frequently Asked Questions
In which cases do I need this bond?
Obtaining a $25,000 auctioneer bond is an indispensable requirement for getting your state license from the Ohio Department of Agriculture. You should submit it together with your official application form. Furthermore, you should renew your bond every time you renew your license, which is done biannually before June 30th.
Your bond guarantees that you will comply with the rules that govern auctioneers in Ohio, as set in Chapter 4707 of the Ohio Revised Code.
What are the bonding costs?
You should obtain a $25,000 bond to get licensed. This is the bond amount, and it is different from your actual bond price, which is the bond premium. The usual percentages are between 1% and 3% of the required amount, if your bond application is solid.
What are the criteria that your surety considers when formulating your surety bond cost? It needs to take a close look at your personal and business finances. It assesses their strength by examining your personal credit score, business financials, and assets and liquidity that you showcase. If you are seen as a solid applicant, you are likely to pay less for your bond.
|Surety bond name||Surety bond amount||Above 700||Between 650-699||Between 600-649||Below 599|
|Ohio auctioneer bond||$25,000||$187.5-$375||$250-$625||$625-$1,250||$1,250-$2,500|
Can I get bonded with bad credit?
With Lance Surety Bonds, it is possible to get your Ohio auctioneer bond even with problematic finances. We run our Bad Credit Surety Bonds program for applicants struggling with issues like low credit score, tax liens, bankruptcies, and civil judgements.
You can expect to pay a slightly higher premium, in the range of 5%-10%. This is needed to compensate for the higher bonding risk. We are still able to offer you a top bonding option, though. This is possible due to our close relations with a number of A-rated, T-listed surety companies.
How do I apply for my Ohio auctioneer bond?
Do you want to get expert knowledge on how bonding functions? Make sure to check out our in-depth How to Get Bonded page.
Have questions about surety bonds in general, or about your application? Just call us at (877) 514-5146, and we will happily help you out.
What happens in case of a bond claim?
The Ohio auctioneer bond that you have to supply to the state Department of Agriculture does not work like protection for your business. Its purpose is to ensure that if you act in an unlawful way and a party suffers damages as a result, the bond can provide them with a fair compensation. This means that you can get a claim against your bond if you transgress from the law.
The surety that bonded you may first cover the costs, as in this way, it ensures a quick reimbursement for the claimants. Then, however, you have to fully repay it. This makes bond claims a serious financial threat that is best avoided.