What Is a Pennsylvania Auctioneer Bond?
Auctioneers in many states in the U.S. have to post an auctioneer bond to obtain a license. In case you want to operate as an auctioneer in Pennsylvania, you will have to get licensed with the Pennsylvania State Board of Auctioneer Examiners and post such a bond.
The purpose of your Pennsylvania auctioneer bond is to guarantee your compliance with state laws. In particular, it ensures you will follow the Pennsylvania Auctioneer and Auction Licensing Act. The bond protects your customers if you fail to abide by the rules. It can provide a financial compensation for harmed customers.
Just like all other bonds in the state, your bond is a three-party contract. The principal is your auction company, which needs to get bonded and licensed. The obligee that requires the bond is the State Board of Auctioneer Examiners. The surety is the third entity which provides the bonding.
Questions about Auctioneer Bonds
Who needs to obtain such a bond?
If you want to conduct auctions in the state, you need a PA auctioneer license from the Board of Auctioneer Examiners. Professionals who need to get licensed include auctioneers, apprentice auctioneers, auctioning companies, and trading assistants. Posting a surety bond is an indispensable requirement during the licensing process.
Your bond safeguards the interest of your customers. It protects them from any unlawful activities on your part such as incorrect advertising, mishandling of funds, or purposeful misguidance.
What is the bond cost?
The bond cost of your auctioneer bond depends on the bond amount you are required to post. You have to post a $5,000 bond to get licensed in Pennsylvania as an auctioneer. However, your bond premium is only a few percents of that amount. If your finances are in good shape, it can be between 1% and 5% of the amount.
The exact bond cost is formulated after examining your personal and business finances. Your surety has to take a close look at your personal credit score, business papers, and any assets and liquidity you may have. In this way, it can assess the level of risk associated with bonding you. If you are considered low-risk, you are likely to pay less for the bond.
For a complete overview of how your bond price is set, you can refer to our surety bond cost page.
|Bond Type||Surety Bond Amount||Credit Sore|
|Above 700||Between 650-699||Between 600-649||Below 599|
|Pennsylvania Auctioneer Bond||$5,000||$100||$100-$125||$125-$250||$250-$500|
Can I get bonded with bad credit?
At Lance Surety Bonds, we operate our Bad Credit Surety Bonds program to help applicants with financial problems. If you have a low credit score, tax liens, bankruptcies, or civil judgements, this program can be of great use.
The typical bonding rates are between 5% to 10%. The price is higher because the bonding risk is increased. However, we work with a number of A-rated, T-listed surety companies, and this allows us to shop around for the best bond option for your circumstances.
How do I apply for a Pennsylvania auctioneer bond?
It’s not difficult to start your licensing and bonding. You can apply online for a free Pennsylvania auctioneer bond quote, which is immediately available. Once you send online your full application with all you paperwork, we will provide you with an exact bond price.
Do you need more information before you apply? Make sure to check out our How to Get Bonded page for further details.
Our bonding experts are here to help. Just call us at (877) 514-5146 and we’ll be happy to assist you.
What happens in case of a claim against me?
It’s important to differentiate between surety bonds and insurance. Your auctioneer bond does not protect your business. It is there to guarantee your legal compliance in the interest of your customers.
An affected party can file a claim against you if you do not abide by your contractual obligations. If the claim is proven, you will have to reimburse the claimant up to the penal sum of your bond. Your surety covers the costs at first, but you have to repay it soon after. Bond claims are to be avoided as much as possible since they cause both financial and reputational harm.