What is a Private School Bond?
Private school tuition can be pretty costly for many families, but the benefits are worth it. The level and quality of education provided is what makes so many students and families seek out private education.
This can be anything from elementary and secondary schooling to vocational and technical training for adults.
Private schooling is an investment, and many states require that that investment is protected.
For this reason, private schools must often obtain a private school surety bond in order to protect the people who are paying that tuition in the event that the school closes unexpectedly.
How much does a private school bond cost?
The cost of a private school bond depends on the amount of coverage that is required. The premium amount is a small percentage of the bond total. Qualified applicants could pay as little as 1% for their surety bond premium. You can get a free quote to see what you can expect to pay for your premium. Just fill out our simple application to get started.
How does this bond benefit my school?
No one wants to think about the possibility of going out of business, but it is a reality that is faced every day. Having a private school bond is beneficial to you because it makes you more reputable and in some states, you won’t be able to become licensed without it. These bonds are most beneficial to your students and their families because they protect them from any financial loss if your school does close unexpectedly. Being a bonded private school is a great way to earn public confidence in your school’s financial standing, which will draw more students to your facility.
How do surety bonds work?
In all surety bonds, there is a principal, an obligee, and surety. The principal is the school. The obligee is the state requiring you to purchase the surety bond. The surety is the company that provides the financial backing for the surety bond.
If your school does close unexpectedly, students and parents are entitled to financial compensation for any tuition that was unused due to the closure. If the school fails to reimburse the tuition, the surety will make a payment up to the amount of the total bond coverage. The school is required to reimburse the surety company for any amount paid out of the bond.