Proprietary occupational school bond cost
The Commonwealth of Massachusetts Division of Professional Licensure Office of Private Occupational School Education requires private occupational schools to post a surety bond. The amount required for each school is determined by the state’s auditor and should be in an amount no less than $5,000 for each school license and no less than $1,000 for each sales representative of the school. The required bond amount must be enough to cover tuition for all students.
These bonds are subject to underwriting, which means the cost of this bond is based on a review of the applicant’s personal credit report. Applicants should also have current business financials and a personal financial statement available during the bonding process, as most surety underwriting companies require this information to produce school-related bonds.
Why this bond
Private occupational school bonds in Massachusetts act as an indemnity agreement between the school, the state and the surety company. This bond ensures that the principal (school) abides by all laws, rules and regulations stated in the Massachusetts General Laws or Codes. Violations of these provisions include:
- operating a school without being legally licensed and registered
- using any form of misleading advertisements
- not informing the Office of Private Occupational School Education of any accreditation as given by the United States Department of Education or any changes to current accreditation
- refusing to comply with routine inspections
The bond also ensures that students/tuition payers are protected if the school was to lose accreditation, go bankrupt or cease to operate for any reason.
Private occupational school bond details
Massachusetts private occupational school bonds are continuous until canceled.The surety can cancel the bond at any time by giving written notice to the Commonwealth of Massachusetts Division of Professional Licensure Office of Private Occupational School Education 60 days prior to the effective date of cancellation.Applicants must indicate the county in which the school is located on the bond form.
Become a proprietary occupational school
Before an individual can be licensed to own/operate a private occupational school in Massachusetts, he or she must do the following:
- pay all necessary fees
- complete affidavit forms
- provide ownership documentation
- complete and pass building and fire inspections
- submit all policy statements
- and more
If the auditor deems necessary, more forms of insurance or security might be required, so applicants should verify his or her unique licensing requirements with the state.Take the first step toward getting licensed by purchasing the surety bond you need. Our experts are here to help!
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- Commonwealth of Massachusetts Division of Professional Licensure Office of Private Occupational School Education Private Occupational School Bond Form for M.G.L. Chapter 112, Section 263
- Commonwealth of Massachusetts Division of Professional Licensure Office of Private Occupational School Education Initial and Renewal License Application and Checklist
- Consumer Affairs and Business Regulation Office of Private Occupational School Education
- The 188th General Court of The Commonwealth of Massachusetts General Laws Part 1 Title XVI Chapter 112 Section 263