Why Do You Need a Private School Bond?
A private school bond is often needed to guarantee that pre-paid tuition fees will be paid back to students if the school should close. The bond can also guarantee that the school obtaining the bond will honor any other contractual obligations that are applicable.
For example, if a private school closes and fails to refund pre-paid tuition, a claim can be filed on the bond. The claim will initially be paid by the surety company backing the bond, but the surety will ultimately come back to the school for reimbursement.
Private schools bonds are required by a bit less than half of the states within the U.S., and can be required of a variety of school types, e.g. vocational schools, business schools, driving schools or cosmetology schools.