Ohio school districts or school boards that hire school bus transportation services require the contracted individual or business to be licensed with the Bureau of Motor Vehicles (BMV). To get the license and maintain it, licensees must provide a custom School Bus Transportation Contract Bond, otherwise known as the School Bus Contract Bond.
The School Bus Contract Bond is provided by Jet Insurance Company as a financial guarantee to the obligee (school district or school board) if they face losses due to the licensee committing a breach of contract.
If you are applying for a first-time school bus transportation license or just scored a new school contract, the Jet team can help you acquire the required School Bus Contract Bond quickly and at an affordable price!
The custom bond limit is determined by the local Deputy Director of the BMV registrar license agency from which the applicant received their approved license and is based on the number of school buses operated under the licensee’s contract ? it is $1,000 per a bus.
At Jet, prices for the School Bus Contract Bond are based on a soft credit check of the applicant and will only be a small percentage of the custom bond limit. For example, rates for a $20,000 bond limit for preferred tier applicants could be as low as $200 annually.
The purpose of the Ohio School Bus Contract Bond is to ensure that the licensed school bus transportation service properly fulfills the terms and conditions agreed upon in the contract with the partnered school district or board and protects such partner from financial loss if a license violation or breach of contract is committed.
For example, if the school bus transportation business fails to provide transportation services for the entire duration of the contract, the school district can file a claim on the bond for reimbursement of payment and to possibly cover the costs of hiring a new school bus transportation business to take on the contract for the remaining school year.
The online application for the School Bus Contract Bond only takes a few minutes to fill out and asks for general information such as the required bond limit, your contact information, and your social security number. We only run a soft credit check, so your score will not be affected!
Once you have submitted your School Bus Contract Bond application with us, one of Jet’s underwriters may contact you for additional info regarding business financials. Shortly after the final review process has been completed, you will receive an approved rate via email that is immediately ready for purchase. Just fulfill payment and we will send over a copy of your bond and receipt shortly after.
The Jet team can file your bond for you! The original signed and sealed Ohio School Bus Contract Bond is required to be filed with your local BMV registrar license agency from which you received your school bus transportation license approval. Just let us know which one it is and we will send it the appropriate address for filing. If you would prefer to file the bond yourself, this option can be selected at checkout.
If you are applying for a school bus transportation license for the first time, you will need to request an application from the Deputy Director of your local BMV registrar license agency. We have provided a list of Ohio BMV locations to help you find which one is local to you.
For additional questions about licensing and where to submit required documents, please refer to the BMV mailing address and contact information below:
Ohio Bureau of Motor Vehicles
PO Box 16520
Columbus, OH 43216-6520
You may cancel your School Bus Contract Bond with Jet at any time! Just send us a written request via email to [email protected] and we will begin the bond cancellation process. A notice will be sent to the BMV registrar license agency that was used for the filing of your bond. Once received by the Bureau, your liability under the bond will be released within 30 days.
As soon as the liability period has ended, Jet will review your bond for any unearned premium remaining, and if applicable, you will receive a reimbursement for such shortly after.
Your School Bus Contract Bond will remain in effect with the dates of your contract, which typically end annually. Once your contract expires and you have reached the bond term’s expiration date, the obligation of your surety bond will be terminated.
A brand new custom School Bus Contract Bond will be needed for every new school bus transportation contract you enter into. Let Jet know if you are entering into any new contracts and we will provide you a quote!
Simply follow the rules and regulations of your school bus transportation license pursuant to the Ohio Revised Code Sections 4501-1-01 through 4501-1-17 and fulfill the terms and conditions of your contract with the school district. Violations of these requirements may lead to the suspension or termination of your license, various penalties brought on by the Bureau of Motor Vehicles, or a claim on your School Bus Contract Bond.
Bond claims will typically occur if the licensee does not properly carry out obligations according to their contract with the school district. For example, if the licensee fails to provide the number of agreed upon school buses for the transportation of a school’s students, the school district could file a claim on the bond to cover the financial losses they occurred from this breach of contract.
It is in your best interest to complete the duties of your school bus transportation contracts while obeying the laws and regulations, or to at least try and resolve any issues with the school district head-on. Failure to do so may result in you facing a loss of your license, the termination of your contract, and a claim on your bond.
Immediately contact Jet if you receive a claim notice regarding your School Bus Contract Bond! Once we have briefed you on our claim process, the Jet team will begin a review and investigation of all available claim documentation and your school bus transportation contract.
If the claim is valid, Jet Insurance Company is obligated, per the filed surety bond form, to make payment for the claim amount up to the full bond limit. You are ultimately held responsible for your actions and must pay Jet back for the paid out claim. An omission to carry out this requirement will lead to future difficulties obtaining a School Bus Contract Bond in Ohio, as well as a school bus transportation license.