Ohio Hemp Processor Bond

Ohio Hemp Processor Bond

Hemp processors are required to file a surety bond with the Ohio Department of Agriculture (DOA) as a licensing requirement. The Hemp Processor Bond assures the DOA and the State of Ohio that in the case of a processor’s insolvency or license revocation/suspension, the processor’s financial obligation to hemp cultivators will be fulfilled should there remain any shortcomings.

APPLY FOR HEMP BOND

Jet Insurance Company offers this bond in accordance with the Department of Agriculture’s mission to support agriculture within the state by satisfying the obligations of a hemp processor when they have failed to do so.

What Is the Cost of the Hemp Processor Bond?

The price of the bond starts at $25 per month or $250 per year, but is dependent on the bond limit needed and the hemp processor’s personal credit. The bond limit is based on how much raw hemp materials are bought by the processor. If it is $100,000 or less in materials purchased in a one year, the bond limit is $10,000; more than $100,000, the bond limit is $20,000. The chart below shows rates for an applicant with preferred credit at both bond limits.

Hemp Material PurchasedMonthly1 Year Term2 Year Term
$100,000 or less$25$250$350
More than $100,000$40$400$700
Ohio Hemp Processor Bond Cost

With Jet, you can choose our exclusive month-to-month payment plan and won’t have to worry about renewing your bond while operating as a licensed hemp processor.

The Hemp Processor Bond Process With Jet

Applying for this bond is easy with Jet! Our online application only asks for the required information for the bond. Among this is general business information and a social security number in order to do a soft credit check (without any hits on your credit score). 

Once the application is complete, it will be reviewed by a Jet underwriter. They will either come back with a quick approval (in most cases) or require some additional financial information to determine eligibility and rate. 

The bond can be purchased online through a link we will send to your email. You will receive a digital copy of your bond and a receipt after processing. The bond form will need to be uploaded along with your license application through the portal. Additional documents may be filed to: 

Ohio Department of Agriculture
Hemp Program
8995 E Main St
Reynoldsburg, OH 43068

An active bond needs to be on file with the Department for the entire three years of the license term. When it’s time to renew your bond, Jet will send you a notice through mail and email. Within minutes, you’ll be able to verify the information for your renewal and submit payment for the new term. 

With monthly payments, you don’t even need to worry about renewals — every automatic payment that goes through keeps your bond active. If your bond limit has increased or decreased, let Jet know right away and we will adjust the rate and make appropriate filings to the DOA.

As for cancellations, you can request to cancel your Hemp Processor Bond through writing. An email to [email protected] would work. Jet will notify the DOA of the cancellation and they will start the 30-day window before it is complete. Payment will continue until that date; then, monthly payments will end and annual bond terms may be reviewed for a prorated refund.

How Does a Hemp Processor Avoid Bond Claims?

The Hemp Processor Bond exists so that when a hemp processor has their license revoked or suspended or goes bankrupt, hemp cultivators will not be left without payment. The best way to avert revocation or suspension is to prevent license issues with the Department of Agriculture. Hemp processors must oblige processor licensing regulations in Chapter 901:14-2 of the Ohio Administrative Code and meet the standards for hemp products in Chapter 928 of the Ohio Revised Code. 

The State of Ohio can file a claim on the bond to fulfill the processor’s obligation to hemp cultivators. If a claim is filed against you, make sure to tell Jet right away! Our team will begin an investigation into the accusation to check if it’s valid as prescribed in the Ohio Administrative Code 3901-1. During this time, you will need to be open and honest in communications and provide any paperwork for your defense. Jet will also be communicative, responding within 21 days. The investigation can go up to 90 days, but additional time may be requested in 90-day increments. 

If the claim is deemed valid, Jet is obligated to pay the claim on your behalf. Since your actions led to the filing of the claim, you are still responsible for paying Jet back in the amount that was paid out from the claim.

Ohio Hemp Processor Bond Form

Notary Bond Application:

X

Business Information:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Employee Dishonesty Bond Application:

Business Information:

Business Description:

Coverage Requirements:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Contract Bond Application:

X

Business Information:

Owner Information:

Job Details:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Worker's Compensation Application:

X

Business Information:

Business Description:

Coverage Requirements

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information: