The California Auction Company Bond is required by the California Secretary of State.
While a license is not required to operate as an auction company in California, every auctioneer and auction company must file and maintain a California Auction Company Bond in the amount of $20,000 with the CA Secretary of State.
The bond is in place to protect the people of the State of California. Any person or persons damaged by any fraud, dishonesty, misstatement, misrepresentation, deceit, unlawful act or omission of the auction company may file a claim against the bond for compensation. The bond also covers the auctioneer’s or auction company’s failure to provide services. The claim must be made to the Secretary of State’s office.
This bond does not protect the auctioneer. If a claim is made on the bond and the surety has to make a payment under the bond, the surety will seek reimbursement from the bond principal (auctioneer or auction company).
No auctioneer or auction company may conduct any business without having a current California Auction Company Bond. A copy of the bond must be filed with the Secretary of State. A bond renewal or continuation must be filed with the Secretary of State prior to the expiration of the current surety bond. If the renewal or continuation is not filed with the Secretary of State prior to the expiration of the current surety bond, a new surety bond and new qualification is required. A $30 filing fee is required for each surety bond filed with the state.
You can read more about California Auction Company regulations on the California Civil Code website.
To obtain a California Auction Company Bond, all you need to do is take a few minutes to fill out our free online application. Within one business day one of our licensed agents will contact you with a no-obligation quote for the price to obtain your bond. Once any necessary paperwork is signed and the premium payment is processed, your surety bond will be shipped to you via USPS Priority Mail (overnight shipping options also available).
At renewal: Approximately 2 months prior to the expiration of your bond, we will send you an invoice for the renewal premium (generally the same as the first year, depending on credit). Once the renewal premium payment has been processed, we will ship you the appropriate Renewal Bond or Continuation Certificate to submit to the Secretary of State to maintain your registration.
The surety bonding experts at Surety Solutions Insurance Services, Inc. (Surety1) are here to help you get bonded quickly and reliably. We work with over a dozen “A” rated surety markets to ensure we find you the lowest rate for your bond. We are also licensed in all 50 states and maintain an A+ rating by the Better Business Bureau.