The City of Tucson, Arizona requires Class B auctions (non-livestock) to be covered by a $5,000 Auctioneer Bond. Jet Insurance Company provides the required bond to guarantee any fraudulent actions committed by the auctioneer that cause the public fiscal damage will be reimbursed by either the auctioneer or Jet.
If Tucson is requiring you to get this bond, you can be approved for it in just moments all online!
The bond costs $100 with Jet. You can also get a 2-year term bond for $175 and 3-years for $250. It is available for purchase online and only takes a minute or two.
The City of Tucson uses the bond to protect the public from fraud that can occur at auction by the auction itself. While you can’t stop someone from preemptively committing a crime (unless you are Tom Cruise in the Minority Report), you can have a third party surety company, like Jet, guarantee payment for damages caused and unaccounted for by an auctioneer.
Surety bonds are for the public’s benefit, not the principals (auctioneers), and that is why they are not optional and require an upstanding third party (the surety company) to provide them.
You can purchase the bond in minutes and have it submitted to the City of Tucson. The bond is continuous until cancelled; it will remain in place so long as you renew the bond before the current term expires. Don’t worry about having to remember to do so as Jet will send a reminder well in advance of that date.
If you would like to have the bond cancelled, just send a written notice to Jet and we will get it done. However, we must submit a notice to Tucson to cancel the bond and they will keep that bond active for another 120 days. A bit extreme, sure, but if there is any money to return after that third of a year, we will send it to you.
The City of Tucson Code Of Ordinances contains what rules apply to auctions in their town. Auctioneers must abide by the rules to avoid any issues with the public and the city. Auctioneers should make sure that people putting items up for auction have made proper notification to the city via a sworn written application. Also, auctioneers should not engage in fraudulent activities such as planting people to cap or boost auction sales.
If you get caught pulling some shenanigans, best to come clean and make the situation right. Otherwise, Tucson may come after you to shut down your operation/side hustle, and part of that is to tap into the surety bond in place.
Then you would be the first! Let us know the details and we will put up a defense against any false claims.
Should the claim be valid, Jet will have to make payment for the damages up to the limit of the bond; and will have to continue to do so if damages were made to multiple parties. This does not absolve the fraudulent action of the auctioneer. The surety bond is a guarantee of payment, not a transfer of guilt. The auctioneer is required to pay the surety company (Jet) back any amount paid out. Much like Minority Report, eventually the guilty party will pay.