FOR ALL YOUR SURETY BOND NEEDS.
These surety bonds are general for all states.
Learn more about private school bonds, and apply today. Absolute Surety offers surety bonds nationwide through a convenient online application system.
Private school bonds are a type of license and permit bond required in many states. Although the terms vary from state to state, they typically protect the rights of students. For example, they usually guarantee that tuition money paid in advance is handled properly and is protected against loss due to the school’s closing, insolvency, or the unlawful/unethical acts of school administrators.
A wide range of private schools are required to purchase this type of bond as a condition of licensing, though the list varies by state. The institutions that may be subject to a private school bonding requirement include cosmetology schools, barber schools, driver training schools, private occupational or trade schools, private elementary and secondary schools, private postsecondary schools (colleges), real estate schools or pre-licensing training programs, and community colleges.
The specific terms of each bond are different, so the basis for making a claim differs as well. Students (or parents) who believe a private school has violated the terms of its bond have the right to file a claim. The surety company that issued the bond will investigate to verify that a claim is valid before paying it. Once the surety company has paid a claimant, the school must then reimburse the surety company for that amount, up to the total bond amount.
The required bond amount varies from state to state and from one type of school to the next. The required amount can range from as little as $10,000 to as much as $100,000. Other factors that may come into play in establishing the bond amount include the number of locations the school maintains and the aggregate amount of tuition collected from students.
The premium that a given school will pay is set by the surety company as a percentage of the total bond amount. The key factors considered in determining the premium rate for a given school are the personal credit score and financial strength of the school’s owners. From this information, the surety’s underwriters can judge the likelihood of claims being made against the bond and the owners’ ability to pay those claims.
Applicants with good credit and financial strength generally pay between 1% and 4% of the bond amount as the annual premium for a private school bond.
Regardless of what state you’re located in, we’re here to help you obtain the private school bond you need in order to meet state licensing requirements. Use our convenient online system to apply today.
