Items found in auctions include land, machinery, cars, electronic collectibles, antiques, jewelry, and property from bankruptcy.

The auction can be carried out either at the auctioneer’s facility or at the client’s property. Auctioneers earn money through a commission from product sold. Some auctioneers specialize in specific product sales; however, they are not just involved in selling products auctioneers also value products and expand their customer base.

An auction business can be highly profitable. However, it carries certain risks and hazards. Auctioneer insurance protects your business from lawsuits and claims.

Cost of auctioneer insurance

The standard cost of general liability insurance for a small auctioneer business depends on the location of the business, product specialty,  revenue, and claims history.

Why auctioneers need insurance?

As an auctioneer business owner, it is your responsibility to ensure the smooth running of operations, including proper item bidding, and to ensure products are correctly valued. Auctioning business, like any business, is prone to risks that could end up damaging the business and causing massive financial losses.

For example, your auction business property can be damaged by fire or natural disasters, causing damage to valuable assets belonging to third parties stored within your facility. Other include theft, vandalism involving arson. Additionally, a customer can sustain an injury while at your property during an auction and file a lawsuit.

Types of Auctioneer Insurance

Commercial Property

This policy protects your auction facility if it is damaged by fire, theft, and vandalism. It also covers damage to physical assets inside the property, for example, furniture and equipment.

Commercial General Liability

This policy covers legal costs associated with third-party injuries on your premises or damages to third parties caused by your business.

Errors and omissions

This policy covers auctioneers if there are allegations from a customer that caused them financial loss as you accrued out your professional duties, for example, advice that you may have offered, undervaluing products, and claims of negligence.

Commercial crime

This insurance policy is designed to cover property loss associated with criminal activities Such as fraud or robbery. It is essential insurance for an auction business.

Workers Compensation

Employees working for your auction business are protected under this insurance. It covers medical bills and lost wages caused by a work-related injury. It is mandatory to carry this policy in most States for businesses that have employees.

Consult a reliable insurance agent to advise on the coverage needed for your auctioneer business to ensure you are fully covered.