Auctioneer Liability

E. R. Munro can design and underwrite an insurance program specific to each auctioneer’s business.

Protection your business may need includes:

  • Liability Insurance — The basic building block of an auctioneer’s protection plan is Liability Insurance. Liability insurance protects your assets should you be held responsible for accidents and/or damage that occur during your auction. The cost of Liability Insurance is based on an auctioneer’s annual payroll.
  • Property — We can provide coverage for your office to include:
    • Furniture
    • Sound Systems
    • Signs
    • Tents
    • Software
    • Computers
    • Telephone Systems
    • Copiers
    • Theft – Burglary – Robbery
    • Protection at the cost to replace
  • We can protect the building or buildings you own with property insurance.
    • Protection will be for the cost to rebuild with the same like, kind and quality of materials and workmanship.
    • $500, $1,000 and $2,500 deductibles are available.
    • Vandalism, Fire, Lightning, Windstorm and many more hazards covered.
  • Consignment Coverage — Insuring the property of others in your care, custody and control is available through Consignment Coverage. E. R. Munro can provide Consignment Coverage based on the value of your customer’s property. This coverage also includes property being held in your storage facility or in transit.
  • Workers Compensation Insurance — Required in most states when you have people helping you at an auction, even if they are volunteering their time. It pays their medical bills if they are injured while helping you at an auction. And in severe cases, it will pay their lost wages when they cannot return to work.
    • We normally do not provide Workers Compensation Insurance unless you have it now and have had it for at least the past three years without interruption. If you have never had Workers Compensation Insurance we can “steer” you to your “state fund” who will work directly with you to obtain the Workers Compensation Insurance you are required to have by state law.
  • Errors and Omissions (E&O) Insurance — Protects you financially if you must make up for a shortfall in sales to your client due to an error or omission on your part. In fact, some sellers demand this policy in their contracts with auctioneers.

Why choose E. R. Munro and Company?

We design insurance policies specific to each auctioneer’s business. We can calculate how much and what type of coverage to offer and how much it will cost. It’s our way of helping you – the auctioneer – protect your business against the unexpected.

E. R. Munro and Company is a proud member of the National Auctioneers Association, Indiana Auctioneers Association, Michigan State Auctioneers Association, Ohio Auctioneers Association, Pennsylvania Auctioneers Association and the West Virginia Auctioneers Association.

Contact us by calling 877-ERMUNRO (376-8676) to speak with an insurance agent to build an insurance package that best fits your needs. We also offer auctioneer bonds at competitive rates.

For answers to questions on your particular auctioneer insurance needs, contact Greg Magnus ([email protected]) at Ext. 157.

Frequently Asked Questions

Why should I buy insurance now? I have been an auctioneer for 20 years. No one has ever sued me, I have never had a person injured at an auction nor have I ever damaged someone’s property.

Today’s society is very lawsuit-happy. The best way to protect your business is to have insurance to defend yourself in case of a lawsuit or claim for injury or property damage. One accidental slip and fall may cost you thousands of dollars. Even if you win the lawsuit, you must pay your legal fees. Many attorneys will charge hundreds of dollars per hour just to defend you. With the economy today, people are looking for ways to become a victim and their lawsuit is a golden lottery ticket.

Do you have examples of auctioneer claims that you have paid?

  1. An auctioneer brought in a friend to help prepare a building for an auction sale. As the friend was walking down the stairs, the stairs collapsed, he fell and was paralyzed. The auctioneer claimed he did not have employees and did not purchase Workers Compensation Insurance. The auctioneer received a lawsuit seeking payment for injuries, lost wages, medical bills, rehabilitation, etc. Who will pay? With no Workers Compensation Coverage the auctioneer will be liable.
  2. An auctioneer had a safe stolen from his place of business. Value of the items stolen was over $34,000. This auctioneer had a BOP and was reimbursed in full for his loss.
  3. Lightning struck an auction house, causing damage to the computer system and phone lines. Our policy paid over $4,500 for a new computer and phone system.
  4. During an estate sale, a buyer went beyond the roped-off area and slipped and fell. She later sued the auctioneer for her injuries. She did not win the lawsuit because the auctioneer was not found liable for her injuries. However, the policy paid $2,300 for defense costs. This would have come out of the auctioneer’s pocket had he not had Liability Coverage.
  5. A bank hired an auctioneer to conduct a bankruptcy auction. When the auctioneer advertised it as a bankruptcy, the owner of the bankrupt business filed a lawsuit against the auctioneer for libel and slander, claiming he was not going bankrupt and the auctioneer hurt his business through his advertising. The auctioneer was found not liable and won the lawsuit. But he incurred legal fees of over $5,000. Liability Insurance paid the legal fees for defending the auctioneer.

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