A School Surety Bond is required for businesses or organizations that provide various types of private education. These surety bonds are known by many names based on the specific program type including Private School Bonds, Educational Institution Bonds or Occupational School Bonds or just School Bonds. The bond is usually posted as part of the licensing process that allows the entity to offer educational services in the areas of academic, professional, career, technical, or trade training.
The surety bond typically guarantees that the school will operate in accordance with contractual commitments made to students and representations made in its recruitment, advertising and career materials. It ensures that the institution complies with rules and regulations as defined by the regulatory authority. Finally, the bond may cover tuition reimbursement in the unfortunate event that the institution is forced to shut down.
