Alabama Private School Performance Bond
AmeriPro Surety Bonds | 844-589-9732
Private School Licensing – Alabama
Private schools in Alabama are licensed and regulated by the state’s Department of Postsecondary Education. The approval process for the licensing of private schools is handled by the Alabama Community College System.
Private schools in Alabama are categorized as non-degree granting and degree-granting. Non-degree-greeting schools require a $20,000 surety bond; degree-granting schools require a $50,000 surety bond.
With our agency, obtaining the required surety bond is going to be the easiest part of your licensing or renewal process.
Qualifying – Premium
For the Alabama private school performance bond, qualifying for either the non-degree granting $20,000 bond or the degree-granting $50,000 surety bond, is by completion of a surety bond application (which our agent can take from you over the phone).
The bond is issued immediately after payment of the premium – $200 annually for the non-degree surety bond; $500 annually, for the degree-granting $50,000 surety bond.
There is neither an underwriter’s review nor credit score inquiry for this bond. What this means for you is that after the completion of an application and payment of the premium, the bond is issued to you immediately.
Once the premium is paid, a copy of the Alabama private school bond can be emailed to you, and the original bond — which you will also need to sign as Principal — will be sent by the following business day.
A Financially Savvy Option: Prepayment of Your Premium
When issued, the Alabama private school performance bond is active for one year from the date of issuance; thereafter you will need to renew your surety bond.
You also have the option to prepay this bond for 2 or 3 years. Prepayment benefits you in two ways: The first is that there is a greater interval in renewal premium for your bond. The second is that you get a savings over year to year renewal of the surety bond.
The breakdown is as follows:
– $20,000 surety bond for non-degree granting private schools –
- If prepaid for two years, the premium is $360, a $40 savings;
- If prepaid for 3 years, the premium is $520, an $80 savings.
– $50,000 surety bond for degree granting private schools –
- If prepaid for two years, the premium is $900, a $100 savings;
- If prepaid for 3 years, the premium is $1300, a $200 savings.
Again, regardless of the premium term chosen, this surety bond is issued immediately upon an application and payment of the premium.
The Bond’s Purpose
For both surety amounts, the purpose of the bond requirement is to protect students from fraud, misrepresentation, or a school which becomes insolvent or bankrupt. The surety bond also protects against breach of contract by a licensed private school which in turn causes loss to students.
The bond guarantees that students can receive refund of tuition and school fees.
Applicants for the surety bond may wish to familiarize themselves with Alabama Code § 16-46-1 through 10.
AmeriPro Surety Bonds is a surety bonds-only agency. We provide license and permit surety bonds in Alabama and nationwide.
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