What is a Wisconsin Private School Bond?
Wisconsin private schools are required to post a surety bond as mandated by the State Educational Approval Board (EAB) a post-secondary education regulatory agency.
The Private School Bond is a type of surety bond that is part of the license requirements to officially and legally conduct business in the State, such as operating courses and collecting tuition fees.
The bond aims to protect a student’s pre-paid tuition fees, thus guaranteeing that the postsecondary school/educational institution will provide the services in exchange for the tuition that was paid.
It also serves as a financial recourse for students and parents that have incurred losses due to the school’s inability or unwillingness to provide the courses and in the event that the school suddenly closes.
Under Wis. Stats. S. 38.50(1)(e), “school” refers to any private trade, correspondence, business, or technical school.
What are the bond conditions?
- The Surety must be authorized to conduct business in the State of Wisconsin.
- The Principal that has applied for, or has been granted, approval to do business as a Private School under Stats. S. 38.50 must comply with all applicable state laws and statutes that govern them.
- If neither the Principal nor any of the solicitors, representatives, agents, and employees performed any violations, the bond obligation will be regarded as null and void; otherwise, it shall be and remain in full force and effect.
- The bond remains continuous in nature; the aggregate liability of the Surety during the entire term of the bond will not exceed the penal sum of the bond.
- The Surety may terminate the bond by giving 30 days’ written notice to the State EAB.
What is the bond amount?
Private school bond amounts vary. For Wisconsin, it is set at $2,000.
The cost of the bond is only a percentage of this bond amount, called the “bond premium.” This is determined by the Surety that underwrites them. The cost may range from 1%-5% of the bond amount. Usually, the credit score of the applicant is evaluated to see a chance of risk in a claim. The school’s financial capability is also considered to demonstrate if they will be able to pay their claims.
How can I obtain a Private School Bond?
To secure this type of bond, the private school license applicant must seek the assistance of a surety bond company.
You will be asked to apply for this bond. If you’re ready to apply for one right now, you may easily do so HERE!
Once the application is received, the surety bond company will immediately process it. In our case, one of our expert surety bond agents will guide you through the whole process from the time you applied for the bond. We will make sure that you understand all the conditions before we issue the bond.
An underwriter will then evaluate the following:
- Your financial strength
- Your job/business performance history
- Your credit score
Once the prequalification process is fulfilled, we will execute the bond and send it to you!