Professional Liability Insurance For Auctioneers

Importance Of Professional Liability Insurance For Auctioneers

Auctioneers must be on their toes at all times, when they are doing their job. While veteran auctioneers are accustomed to handling stressful situations, newbies are just learning. Contrary to belief, it takes a long time to become good at auctioneering. Along the way, mistake will be made. And, some of these mistakes could cost companies, organizations and individuals who are auctioning off their goods a financial loss.

Regardless, if you are auctioning off livestock, vehicles or furniture, mistakes are always a possibility. This is why it is crucial to obtain professional liability insurance, which protects against financial loss associated with third-party claims and civil lawsuits.

As an auctioneer, you are licensed by the state you are operating in. So, you are required to follow the laws of your profession. There are several scenarios that could lead to a complaint or civil lawsuit. These scenarios include misleading information provided on listings, wrong starting prices and mistaking nonverbal actions for bids. All of these mistakes will either cost the seller or the buyer. And, in some cases, both parties can lose money.

Facing a lawsuit or claim as an auctioneer can potentially ruin your business. Errors and Omissions can help to reduce the impact of these mistakes and protect your business from bankruptcy and closure.

We recommend having professional liability insurance for no less than $1,000,000 along with CGL insurance coverage for $1,000,000 as well! Rates starting at $50/month!

 

Professional Liability Insurance For Auctioneers

 

Additional Coverage Recommendations

All auctioneers operating in Canada should acquire additional insurance coverage. As mentioned above, mistakes are always a possibility for auctioneers. You can never have enough coverage, but too little coverage will cost you dearly, if you make a mistake that leads to a financial loss for your client or a bidder.

Commercial General Liability Insurance – CGL protects against lawsuits associated with false advertising claims. Even though you try to be as accurate and informative as possible about your services, it is possible to mislead consumers without actually meaning to. If one of your clients claims you falsely represented or advertised your services and they lose money, you will be forced into a civil lawsuit that could last for several months to years. If the judge rules in favor of the plaintive, you will pay dearly. This is where commercial general liability insurance comes into play. It will cover part or all of your litigation costs and all or part of the monetary judgment.

It is recommended to carry at least $500,000 in coverage. However, if you believe your exposures are extremely high, it would be in your best interest to increase your coverage amount accordingly.

  • Commercial General Liability Insurance Recommended Limits – $1,000,000 per claim / $2,000,000 aggregate


Commercial Property Insurance – 
If a natural disaster destroys your place of business, you will be forced to close your doors for an unspecified period of time. If your business is not insured, you may not be able to afford the repair costs. This is why it is recommended to carry commercial property insurance, as it will cover the repair or renovation costs associated with the damaged caused by the natural disaster. In Canada, this insurance is a requirement for all business owners, including auction companies.

It is recommended to carry between $500,000 and $1 million in coverage. Your coverage amount will depend on your level of exposures and risks.

  • Commercial Property Insurance Recommended Limits – $500,000 per claim / $2,000,000 aggregate


Cyber Insurance – 
All professionals are at risk of becoming a victim of cyber crime. This especially includes auctioneers who conduct business online. If you own and operate an online auction website, you are at a higher risk. Cyber crimes include anything from stealing or destroying personal/business data, network intrusions and loss of access to irreplaceable items, such as videos, images and written content. All these crimes could put you and your company at risk of a third-party claim or civil lawsuit. Cyber insurance will protect you and your company against damages caused by cyber crimes.

It is recommended to carry at least $100,000 in coverage. If you conduct all of your business online, you may want to increase your coverage amount to fully protect your company against cyber crimes.

  • Cyber Insurance Recommended Limits – $100,000 per claim / $1,000,000 aggregate

 

public auctioneer


Average Cost

Many auctioneers try to keep their expenses to a minimum. And, doing so will mean opting out on additional insurance coverage. This is a huge mistake, because many types of insurances are extremely affordable and effective.

  • Professional Liability Insurance – $50 a month
  • Commercial Liability Insurance – $30 to $40 per month
  • Cyber Insurance – $15 per month

Be sure to get in touch with us to get a free quote today. You can do so using the form on our website. Or, you can contact us via phone or email.

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FAQ before buying insurance for Auctioneers

 

Other professions we also provide insurance for:

Academic Testing Centres
Accident Investigation
Accident Prevention Consultants
Accountants
Actuaries
Adjusters
Adoption Agencies
Advertising
Advertising Agencies
Advertising Agents & Services
Aerial Mappers
Agents
Agrologists
Agronomists
Alarm Monitoring Services
Allied Health Professionals
Alternative Dispute Resolution Firms
Alternative Energy
Answering Services
Anthologist
Anthropologist
Appraisers
Arbitrators & Mediators
Arborists / Tree Surgeons
Archaeologists
Architects
Architects & Engineers
Architectural technicians and technologists
Associations
Attorneys
Auctioneers, Auction Houses
Authors
Bailiffs
Blueprint & Photocopy
Boat Registrars
Bookkeepers
Broadcasters
Building Designers(Bill 124)
Business Brokers/Managers
Business Consultant
Business Enterprise Agencies
Business Training Courses
Cabling Designers
Camera & Photo Supply Stores
Careers Advisory Service
Catering Consultancy
Cereal Growing Advisors
Chambers of Commerce & Trade
Charities
Chiropodists
Chiropractors
Civil engineers
Claims Adjusters & Administrators
Collection Agencies
Commercial Printer
Communication Consultants
Company Formation
Company Search Agency
Conference & Event Management
Conference Facilities & Services
Conservation Consultants
Conservation Organizations
Consultants
Consumer Organisations
Contest Managers
Contractors Accountants
Convention Planners
Copywriters
Counselling & Advice Services
Court Reporters
CPA/CMA
Credit Reference Services/Bureaus
Custom House Broker
Customs & Forwarding Agents
Data Processing Services
Database Managers
Day Spas
Decorators – Interior
Dental Laboratories
Designers
Dieticians (Consulting)
Directors
Directors and Officers
Documentary creators
Employment Agencies
Employment Agencies/Recruiters
Employment Placement Agencies
Energy Audits & Assessments
Engineers
Environmental Engineers
Event Planners
Excess & Umbrella Liability
Filmmakers
Fitness Clubs
Foreign Legal Consultants
Holistic Professional
Home inspectors insurance
Immigration Consultants
Independent Contractor
Industrial Designers
Information Technology
Interior Designers
IT Contractor
IT Specialist/Technician/Programmer
Journalists
Lawyers
Lawyer’s Excess Professional Liability
Long Term Care
Management Consultants
Mediators
Medical Clinics
Medical Devices
Medical Professionals (Malpractice Insurance)
Medical Related
Medical Student Malpractice Insurance
Mortgage Brokers
Multimedia designers
Naturopaths
New Media
Occupational Health and Safety Consultants
Paralegals
Photographers
Placement Agencies
Podiatrists
Private Investigators
Process Servers
Product Designers
Professional Entertainers
Professional Organizer
Professionals Liability
Project Managers
Property Managers
Publishers
Publishers and Printers
Quality Control Consultants
Recruiters
Recruitment and Employment Agency
Recruitment Consultants
Research & Development
Roofing Consultants
Safety Engineers
Service Organizations
Solar & Wind Farm Engineers & Consultants
Spa Package
Structural Engineers
Sub-Contractor
Surveyors
Tax Prepares
Technology Companies
Therapist Professionals
Town / Urban Planners
Training Providers/Trainers
Translators etc.
Travel Agencies
Travel Agents
Travel Agents, Tour operators
Web Designers
Web-Site Designers
Workplace Engineers & Consultants