Occupational school bond cost
The Delaware Department of Education requires private business and trade schools in the state to be bonded. Required bond amounts are determined by the institution’s gross revenue of tuition. Applicants should verify their required bond amount with the state prior to bonding. The price you’ll pay for your surety bond is based not only on your required bond amount but also on a review of your personal credit report.
Because this is a school-related surety bond, surety underwriting companies require certain information to produce the bond. Applicants should know the institution’s offered programs, cost of tuition, expected method of accepting tuition payments and estimated number of students when they contact our team of surety specialists. Have current business financials and a personal financial statement handy to expedite the bonding process.
Why this bond
Private business and trade school contract bonds in Delaware ensure that principals (schools) observe the provisions of all contracts with students and all provisions of the laws of the state and the rules and regulations set by the Delaware Department of Education. Specifically, the bond protects students/tuition payers from financial loss if the school ceases to operate or cannot fulfill contracted services for any reason.
If the school does not adhere to these terms, a claim can be filed against the bond. If the claim is validated, the surety will compensate harmed parties for financial losses up to the full bond amount. The principal must then reimburse the surety for damages paid out.
Private business or trade school bond details
Occupational school bonds in Delaware remain in full force, virtue and effect until violated or canceled. The surety can cancel the bond at the end of any annual term by giving written notice of cancellation via certified mail (return receipt requested) to the Private Business and Trade School Department of the Delaware Department of Education in Dover, Delaware. Cancellation becomes effective 90 days after the department receives the notice.
Become a private business or trade school
All certification applications must be sent to the Delaware Department of Education. To be eligible for certification, a school must maintain a cancellation and settlement policy and have a separate account for unused tuition and fees. On the application form, schools must list their location, educational institution type and certificate holder.
The following documents and information must be attached to each application:
- A current school catalog
- A chart of the managerial organization
- All instructional staff information
- A description of all programs and courses
- A list of major equipment
- A labeled drawing of the school’s sanitary facilities
- A surety bond in the proper amount
- And more
More licensing information can be accessed via the Additional information section of this page. Begin the licensing process by purchasing the surety bond you need!
Apply for your surety bond
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