Michigan Proprietary School Bond |
AmeriPro Surety Bonds | 844-589-9732
Proprietary Schools – Michigan
The surety bond requirement for proprietary schools operating in Michigan is overseen by the Michigan Licensing and Regulatory Affairs department.
AmeriPro Surety Bonds provides you with the proprietary school bond in the amount that you are required to purchase as both a first time and renewal surety bond.
Michigan Proprietary School Bond: The Amount Required and the Bond’s Duration
Michigan state law is not explicit regarding the amount of surety bond that you will be required to furnish to LARA.
You will first want to know beforehand the amount of the surety bond that you are required to purchase, and then provide that amount to us. We will then be able to source the best deal for you.
The minimum surety bond required, however, will be a $5000 surety bond.
Its Expiration Date
According to state regulations, the bond will have an expiration date of June 30th of the year in which it is issued. For bonds issued after June 30th, the expiration will be June 30th of the following year.
Michigan Proprietary School Bond: Its Premium
The following factors will determine the pricing of your proprietary school bond:
- How much surety bond you are required to purchase;
- At what time of the year the surety bond is purchased. Again, the bond’s expiration is June 30th;
- Information provided on your surety bond application;
- A standard credit check.
Because of the above variables, the bond’s pricing may vary considerably.
As a broad general rule, however, an applicant may expect to pay between 2-4% annually for the bond’s premium.
The Purpose of this Bond
The Michigan proprietary school bond has one primary purpose:
In case the proprietary school closes, the bond is for the indemnification of any students who suffer loss of funds paid to the school.
So, while the bond is required of you as a prerequisite for licensing, its benefit is solely for your students; it is not for you at all, really.
Nor is it an insurance policy: As principal of this surety bond, you are liable to repay the surety for all costs and fees should any claims be paid against your bond.
AmeriPro Surety Bonds is a surety bonds-only agency providing license and permit, contractor, court, and fiduciary surety bonds in Michigan and all 50 states.
Our goal is to provide great pricing and good service.
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