Private School Bonds
A Private School Bond is a type of surety bond required for private schools to operate legally and protect the financial interests of students, parents, and state regulators. This bond ensures the school complies with state laws and maintains financial responsibility.
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Why You Need a Private School Bond
Private School Bonds are important to:
- Comply with state licensing requirements
- Protect students and parents from financial loss
- Demonstrate financial responsibility
- Maintain accreditation or licensing
- Avoid penalties, fines, or operational restrictions
Without a bond, a school may be prohibited from operating legally or issuing certifications.
Private School Bond FAQs
These are some of the most common questions asked about Private School Bonds and how they work.
A Private School Bond guarantees that a private school will follow all applicable state regulations, ethical practices, and financial obligations. It provides protection for students, parents, and the state if the school fails to meet its contractual or legal commitments, including tuition obligations or proper record-keeping.
This bond is often required for licensing or accreditation purposes and demonstrates that the school is financially responsible and trustworthy.
The cost of a Private School Bond is a small percentage of the total bond amount, typically 1%–5% annually, depending on:
State-required bond amount
School financial history and credit
Years in operation
Size of student body
For example, a $50,000 bond may cost $500–$2,500 per year for a well-qualified school.
Private School Bonds are three-party agreements:
Principal: The school or educational institution
Obligee: The state education department or regulatory agency
Surety: The bonding company issuing the bond
If a claim is filed due to noncompliance, mismanagement, or financial misconduct, the surety pays up to the bond limit. The school is then responsible for reimbursing the surety.
Private School Bonds are typically required for:
Private K-12 schools
Vocational or trade schools
Parochial or religious schools
Specialized educational institutions
New or expanding private schools seeking state approval
Bond requirements and amounts vary by state, and some states require bonds for every school location.
Call us at 407-786-7770 or email us at [email protected]