How much does a proprietary occupational school bond cost in Massachusetts?
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.
|Bond Type||Bond Amount||Cost*|
|Varies Private Occupational School Bond||Varies||Starts at 1%||GET A QUOTE|
At SuretyBonds.com, we make the bonding process fast and easy. Give us a call at 1 (800) 308-4358 or submit a bond request to get started now.
What does a Massachusetts private occupational school bond protect?
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.
What are the terms of this surety bond?
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.
How to become a licensed proprietary occupational school in Massachusetts
Before an individual can be licensed to own/operate a private occupational school in Massachusetts, he or she must do the following:
- Complete the Initial and Renewal License Application and Checklis
- Indicate whether the type of school is for-profit or non-profit
- Indicate the structure of ownership of the school: individual, partnership, corporation, LLC, LLP or franchise
Include the following with the application and checklist:
- Check or money order enclosed payable to the Commonwealth of Massachusetts
- Check with the Commonwealth to verify the fee amount
- Private Occupational School Licensure Affidavits and Revenue Enforcement and Protection Affidavit (REAP); completed, signed, and dated
- Provide documentation of ownership
- Complete and pass building and fire inspections
- Submit all policy statements
- Provide a list of all employees, instructors, sales representatives, and school branches (if applicable)
- Post a surety bond in an amount determined by the State Auditor
If the auditor deems them necessary, more forms of insurance or security might be required, so applicants should verify his or her unique licensing requirements with the state.
Complete licensing information can be found on the application and checklist. Be sure to complete all licensing requirements and submit all necessary documents as incomplete applications will not be processed. Be sure to keep a copy of all documents as well, as no applications can be returned once received by the state.