For freight companies or individuals looking to move a load heavier or larger than what is allowed by law, a special hauling permit is required. Often a $500,000 liability policy is required but, in cases of permit violations, self-insured operation and the Mennonites, a $500,000 Special Hauling Permit Bond may be required.
The bond is required by the Ohio Department of Transportation as a financial safeguard to protect the state’s infrastructure from potential damage caused by hauling excess loads. For companies that self-insure (meaning they prove a capacity to pay for third-party damages), Ohio still wants a third-party surety bond financier, such as Jet Insurance Company, to back up the companies promise to pay claims. If the Ohio Department of Transportation is requiring you to get the bond for past violations, this is a form of discipline that also provides financial recourse for additional violations that occur.
With Jet, we are going to need to know why the bond is being required: first, what is the permitted operation coming up, and second, why is the Department of Transportation requiring a bond for that permit? From there, Jet will most likely need to review business and personal financials before approving eligibility and the premium rate for the bond.
You will work directly with one of our underwriters to get approval for the bond. If approved, payment can be made online. For blanket permit bonds that are needed annually, Jet provides a monthly payment option.
The bond must be filed with the Ohio Department of Transportation Special Hauling Permit Section. When it comes to dropping an Excess Load Permit Bond to the ODOT, Jet can deliver it directly or you can submit it with other permit application paperwork to the following address:
State of Ohio Department of Transportation
ODOT Special Hauling Permit Section
1980 West Broad Street, Mail Stop 5140
Columbus, OH 43223
For permits covering a single shipment or defined series of shipments (typically 90 days or less), the bond will expire once the final shipment has been made safely, thus ending the need of the permit.
Blanket permit bonds that extend over a longer period of time (generally annual terms) can be purchased annually with Jet. If the Special Hauling Permit Bond is required year after year, it can be renewed alongside the permit. Jet will send an invoice prior to the bond’s expiration date. All you need to do is make payment for the next term on the bond.
Should the blanket bond need to be cancelled, just email Jet at [email protected]. We will request cancellation from the Department of Transportation, which will cancel the bond 30 days after receiving Jet’s notice of cancellation. Any refund will be calculated from the date the Department cancels the bond. Refunds are only available for blanket coverage bonds.
Permit bonds that are specific to a job cannot be cancelled once filed with the Department of Transportation, unless Jet receives a release of liability from the Department.
You are most likely here because of a violation on a prior permit and the Ohio Department of Transportation is requiring you to get the $500,000 Excess Load Permit Bond to receive a new permit. From prior dealings with a department investigator, you may be familiar with the Ohio Revised Code Chapter 5577 regarding the law on excess loads on Ohio highways, roads and bridges. Understanding and following these regulations is a good start to avoid another violation, as is knowing the details of the Operation Guide for Vehicle Operating With An Oversize/Overweight Special Hauling Permit. Simply put, you should follow permit standards by delivering the excess load safely on the prescribed route.
Any violation will result in a reprimand that may make it impossible to receive a permit again. An accident that occurs and causes your liability policy should cover those damages — a little harm, no foul. Any excess damage above the liability limit will be your responsibility. The liability policy will exclude negligent and fraudulent behavior. Now we can start to see why the surety bond is required for those with past violations: the State of Ohio wants protection from risky ventures, like moving excess loads through the State.
Any failure on your part to recoup financial damages you caused will result in a claim against the surety bond. This is likely a death sentence to the business. Jet will make payment to the damaged party, but unlike an insurance policy, the surety bond payout must eventually be recuperated by the surety company (Jet). The responsibility of violation and lack of action to repay damages by the permit holder remains with them and the now-former permit holder must repay the surety company.