Ohio Professional Employer Organization Bond

Ohio Professional Employer Organization Bond

Any Professional Employer Organization (PEO) that is unable to show positive working capital in their financial statements when registering with the Ohio Bureau of Workers Compensation (BWS) must obtain a surety bond. The BWC requires the bond because of the financial security it offers if the PEO does not comply with the applicable regulations. Jet Insurance Company is a third-party guarantor that offers the bond and will step in to provide payment if a PEO fails to remit due wages, taxes, benefits, and other entitlements. 

VIEW YOUR BOND PRICE

Apply for the Professional Employer Organization Bond with Jet today for a streamlined process and affordable rate.

What Is the Cost of the Ohio PEO Bond? 

With Jet, you can pay as low as $100 for your Professional Employer Organization Bond. However, the price you pay will be a reflection of the required bond limit and review of your credit. Check the chart below for rates at various bond limits for applicants with preferred credit. 

Bond LimitAnnual Cost
$10,000$100
$25,000$250
$50,000$500
Jet's Ohio PEO Bond Pricing

Why Does the Ohio Bureau of Workers’ Compensation Require the PEO Bond?

Professional Employer Organizations have responsibilities that are deemed as high priority, including:

Because of these important responsibilities, the BWC ensures all PEO’s have gone through a proper registration process. Part of the registration process is submitting financial statements to show working capital. If a PEO has a working capital deficit, meaning their liabilities exceed their assets, they must file a surety bond as required under Ohio Revised Code Section 4125.051.

The bond is a guarantee to the Bureau that the PEO will complete their obligations according to the Ohio Revised Code. If (within the 12-month bond period) the PEO can change their working capital to be positive, the bond may no longer be needed.

How to Apply for the Professional Employer Organization Bond With Jet 

Our application only consists of a few questions that are necessary to get you a bond quote. Once submitted, you will either receive a quote immediately or your application will be sent to a Jet underwriter for review. Generally, we only need to do a review if a large bond limit is required, but don’t worry, it is a quick process and a bond quote will be emailed to you shortly. You will be able to provide payment directly online and receive your bond copy and receipt via email right after.

Can Jet File the PEO Bond to the Ohio Bureau of Workers’ Compensation for Me?

Absolutely! We are happy to file the bond to the BWC for you once it’s been paid for. However, you can also file the bond yourself - just select that option when providing payment. Either way, the bond must be sent to the address below:

PEO Unit, Employer Services Division
Ohio Bureau of Workers' Compensation
30 West Spring Street, L22
Columbus, OH 43215

What Happens if I Need to Cancel My Ohio PEO Surety Bond?

You may request cancellation with us at any time, although if the BWC requires this bond, you must keep it active or have another bond on file with them. Not having the bond when required can lead to your PEO registration being revoked.

Email us at [email protected] if you need to cancel, and we will send a notification to the Bureau. They keep the bond on file for an additional 30 days and you are still liable during that time.

When Does the Ohio Professional Employer Organization Bond Expire?

After 12 months of being active, the bond will expire. The Bureau of Workers’ Compensation will evaluate your financial statements during that 12-month period to see if the bond will be required for an additional year. Let us know if the PEO Bond is needed for 12 additional months and we will send you an invoice to make payment and ensure you have the coverage you need. Once your financial statements reflect positive working capital, the BWC will release you of the bond requirement.

How Does a Professional Employer Organization Avoid Bond Claims?

You must pay the semi-annual workers’ compensation premiums in a timely manner, and follow regulations in Chapter 4125 of the Ohio Revised Code to avoid claims. The Ohio BWC will request a payout on the bond if you neglect paying benefits, taxes, wages, or other entitlements due or otherwise relating to shared employees. 

The Bureau also has jurisdiction to revoke your registration if you:

You will be found guilty of a misdemeanor for violating Section 4125.05 of the Revised Code.

If any issues occur, it is recommended that you cooperate with the BWC to avoid further disciplinary actions, including a claim.

What Happens if I Get an Ohio PEO Bond Claim?

Once notified of a claim, Jet will thoroughly look through the details before making payment. Any justified claims must be paid to the Bureau of Workers’ Compensation. As a PEO, you are liable for your actions and therefore must pay Jet back for the full claim amount. If a claim is not restored to its full limit, you risk losing your registration.

Ohio Professional Employer Organization 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: