Do auction companies need special insurance for their equipment?

Many auction companies find that a basic business policy does not fully cover expensive equipment taken off-site, such as sound systems, laptops, trailers, and tents. Some insurers offer inland marine or equipment coverage designed for property that moves between locations, but terms and availability vary.

Separate from equipment, auction companies also typically consider general liability coverage for injuries at sales and coverage for consigned goods in their care. Whether consigned property is protected depends on the policy and the contract with the consignor.

Because coverage, requirements, and costs vary by state and by insurer, the best step is to sit down with an insurance agent who works with auction or event businesses. Bring a list of your equipment, its approximate value, and a description of where and how you hold sales.