Auctioneers and auction firms must file a $25,000 Auctioneer Bond or $50,000 Auction Firm Bond with the Ohio Department of Agriculture before they can receive a license to conduct their sale. The Auction Bond is used to reimburse injured parties when an auctioneer or auction firm causes financial damage because of their actions.
Jet Insurance Company provides this bond as a way to assure the State of Ohio that its citizens will not be harmed financially based on the actions of the auction firm or auctioneer.
The cost of the bond depends on the applicant’s credit check and which of the following bonds is needed: the $25,000 Auctioneer Bond, the $50,000 One-Time Auctioneer Bond, or the $50,000 Auction Firm Bond. The chart below provides an example of rates available at a preferred credit rating.
|Bond Type||Bond Limit||Monthly||Annual|
Buying your bond with Jet means buying directly from the insurance company, avoiding pesky middlemen that slow down the process and add in extra fees for themselves.
It’s easy to get your Auction Bond with Jet: all you need to do is take a few minutes to complete our online application. Only basic business information is needed, such as a business name, which license you need the bond for, and a social security number (used for a soft credit check). Once that is done, you will receive a rate that is available for purchase right away. You will receive an emailed copy of your bond and receipt after the payment has been received.
After purchase, Jet will prepare the bond form and mail it to you. Once you have signed the bond, you must submit it along with your application at the following address:
State of Ohio Department of Agriculture
8995 E Main St
Reynoldsburg, OH 43068
Jet will send out renewal notices by mail or email for bonds that were paid in full nearing the June 30th expiration date. To renew your bond, simply fill out the notice and pay the renewal premium. If you are no longer required to have a bond, you don’t need to worry about renewal; failing to submit renewal paperwork will end with the bond expiring on the 30th of June.
For those with monthly payments, your bond will continue to be active with each payment that is processed.
If you no longer need the bond, notify Jet at [email protected] to end your bond obligation. The Department may hold the bond for an additional 30 days before the bond is released.
The Department of Agriculture enforces the surety bond requirement to make sure that the actions of an auctioneer or auction firm do not bring financial damage to the people of Ohio. The auctioneer is obligated to follow the standards written in the Ohio Revised Code, Chapter 4707. In particular, the auctioneer is to avoid the fraudulent actions listed in Section 4707.15. These actions include intermingling the funds of the auction with their personal funds, false advertising, or failing to remit payment within an appropriate time frame.
Failure to uphold the code and act dishonestly will not only lead to disciplinary action, but could cause direct financial damage and result in a lawsuit and ultimately a claim upon the license.
If a claim is filed against your Auction Bond, contact Jet as soon as possible. We will defend you against any false claims, but we are obligated to open an investigation into the claim. During this time, you should be open and honest in your communication. Within 90 days, the claim will be rejected if it is not valid, or if it is valid, a payout is in order. Jet will pay the claimant up to the full amount of the bond; if that is not enough to cover the damage, the auction recovery fund may be utilized.
Jet’s role as surety is to provide prompt reimbursement to the person who was injured. But, the bond is not like insurance that will cover for your actions. You are ultimately responsible for the damages and will be required to pay Jet back in the amount of the claim.