Product Q&A: Auctioneers Insurance

12/12/2018

Product Q&A: Auctioneers Insurance

We interviewed our Founding Director, Alex Thornton, about our Auctioneers insurance. We asked him what the cover consists of, what to consider when placing Auctioneers insurance and what Quantum can provide. Read it here...

What does auctioneers insurance cover?

Auctioneers Insurance covers an Auctioneer for all the stock and goods in trust that they have at their premises or that they have assumed a responsibility to insure.

The policy can also cover their business contents, money, glass, business interruption, public and products liability and marine transit risks where required.

Finally, the policy can cover them for off-site auctions held at hotels and private houses where needed. We can cover auctioneers of fine arts, collectibles, jewellery and valuables, antiques, furniture, wine and classic cars (classic cars are not covered when being driven under own power).

What are five key considerations when placing auctioneers insurance?

Auctioneers have complex insurance requirements particularly around the basis of settlement. There are different bases of valuation depending on where the item is in the auction cycle. For example, when the item is first brought in, the item will probably not have a reserve set – this process occurs as the catalogue is compiled.

So, at the outset, the auctioneer needs to be able to establish a provisional value with the owner and for the policy to respond on that value. Once a reserve has been set the value is the reserve price, but if a higher value has already been agreed in step 1 above, then this price will apply up to reserve plus 30%. At fall of hammer the price is set as the sale price plus buyers’ commission up to 15%.

The 5 key placing considerations are:

What type of goods does the Auctioneer specialise in, and what are their needs with regard to covering stock and goods in trust, both at the premises and away from the premises.
What is the premises security like both during business hours and during public auction days, but also at night? What are the fire protections?
Do they have off-site storage facilities that need to be included for cover? If so what values may be stored, and what are the security and fire protections at the site?
Do they do any offsite auctions? If so, where and how often are these held. And how do the goods get to the site?
Do they send any items away for example to be repaired or to external valuers and do they need transit insurance?

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