Private career schools or vocational schools, are regulated by the state’s Department of Labor and Workforce Administration.
Evidence of a New Jersey private career school surety bond is required. The bond will typically be in one of two amounts, and AmeriPro Surety Bonds facilitates the amount of surety bond you require.
According to New Jersey state law, New Jersey career schools are required to furnish the department with an initial surety bond of $20,000.
Thereafter, according to N.J.A.C. 12:41-2.2(a)5i through vii, the bond amount required will be a minimum of $20,000 surety bond or 5% of the average gross income for the prior 3 years, whichever amount is greater.
The premium for the New Jersey career school bond will be dependent on the amount of the surety bond requirement, information obtained from a surety bond application, and the applicant’s credit score.
Though it may vary from person to person depending on the above factors, as a broad general rule, the amount of premium for a well-qualified applicant may be as little as 1% of the bond’s amount.
Once issued the career school bond will be active for a period of one year from the date of issuance. Thereafter, the bond will need to be renewed.
Based on the calculation amount, it is probable that the bond amount will adjust upon renewal.
The New Jersey private career school surety bond is a tuition performance bond. The bond is a financial guarantee which ensures that tuition money gained from students is used in a manner consistent with the purpose of tuition.
The performance bond, therefore, while required of your school, is for the benefit and protection of your students and the tuition that they provide your school.
The surety bond’s existence allows students to reclaim losses for the failure of the school to use the tuition money as granted.
As principal of this surety bond, however, were a claim to be paid against your bond, you would be responsible for the full reimbursement to the surety.
AmeriPro Surety Bonds is a surety bonds-only agency. We provide license and permit, contractor, court and fiduciary surety bonds throughout New Jersey.
Our agency also provides surety bonds nationwide.
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