Ohio Sewage Treatment System Contractor Bond

Ohio Sewage Treatment System Contractor Bond

Ohio residential sewage treatment system installers, service providers and septage haulers must have a registration bond required by the State of Ohio Department of Health. This surety bond, provided by Jet Insurance Company, gives the State and customers financial recourse should they be injured by the actions or violations of the contractor.

CHECK YOUR BOND PRICE

When it comes to red tape and difficult certification procedures, Jet is a direct resource giving you the best assurance to get the bond quickly and filed correctly.

How Is the Price Determined for the Sewage Treatment System Bond?

The cost for the bond depends on the trade performed. Each profession has its own bond limit and Jet’s price for the bond is just a small fraction of that limit. Below is an example of Jet’s preferred tier pricing for the Ohio sewage treatment system trades:

Sewage Treatment System ProfessionBond LimitMonthlyAnnual
Installer$40,000$20$200
Service Provider$25,000$13$125
Septage Hauler$25,000$13$125
Installer and Service Provider$15,000$10$100
Installer (Only 1 Septage System)Equal to system costVariesVaries
Installer (Only 1 Septage System - Small Flow)$25,000$13$125
Bond Rates for Sewage Treatment System Contractors

For service providers and the septage haulers needing the $25,000 bond, the price of the bond with Jet is always $13 monthly or $125 annually. For installers, Jet does require a credit check to determine the bond’s premium rate. 

A significant advantage of bonding with Jet is our monthly payment option. For those needing a bond term less than a year, this could be the simplest way to pay for the bond until the registration period concludes at the end of the year.

What Is the Purpose of the Sewage Treatment System Bond in Ohio?

Ohio requires installers, service providers and septage haulers must carry a bond as protection to the government and its citizens from their unlawful actions. The bond is required because it doesn’t serve a direct benefit to the contractor, but is required to protect people from the contractor’s action. Otherwise who would buy something if not for their benefit? Maybe these guys.

The Ohio State Legislature put the bonding requirement in place as a tool to guarantee financial restitution from damaged parties (including themselves) at the hands of sewage treatment system contractors (see Ohio Administrative Code 3701-29). It is not out of sheer bureaucratic wantonness the bond was made mandatory. True risk exists from dishonest or unskilled sewage system contractors. And if these poor players attempt to get away with malevolent or careless deeds initially, you can bet that person will also find a way to skirt around the responsibility to make amends when caught. 

Therefore, a surety company (like Jet) is required first of all, to vouch for the sewage treatment system provider through its offer of a bond and, second of all, to make financial restitution when all else fails with the contractor setting things right.

How to Apply for the Ohio Sewage Treatment System Registration Bond With Jet

Simply click the button above to complete the application online and see your bond rate. The whole process will take less time than to read this article about the bond.

Jet is going to need some information about your business to complete the bond form. Installers will need to provide the social security number of the owner. Jet needs to run a soft credit check that only takes a second and does not impact credit scores.

You will be presented with a price and an option to purchase the bond monthly or annually. Once payment is made online, you will receive a copy of the bond and receipt of payment.

How Does the Sewage Treatment System Bond Get Filed to the Ohio Department of Health?

Jet will complete and submit the original bond form with the required power of attorney form directly to the Department of Health at the following address:

Ohio Department of Health
BEHRP/Residential Sewage Program
246 N High St
Columbus, OH 43215

Should you want to file the original bond yourself, just let us know when you are purchasing the bond and Jet will send the completed bond to you. This may be necessary when filing the bond with an original application to receive your initial certification. 

The registration period runs from January 1 - December 31 each year and the bond term must match that time frame. If purchasing a bond for a new registration you can pay for the bond with Jet for only the amount of time needed on the bond until December 31st.

Jet is always up to date on the new bond form required each year by the Ohio Department of Health.

What if I Need to Cancel My Sewage Treatment System Bond?

Just email Jet at bonddept@jetsurety.com to request bond cancellation. Jet will process the request immediately. Unfortunately, there is a 90-day cancellation provision on the bond; this means the bond will remain active with the Ohio Department of Health for 90 days once they receive our cancellation notice. 

Monthly payments will still need to be withdrawn from your provided account at this time. If you paid for the bond annually, we will send a prorated refund so long as the bond is cancelled over 90 days before December 31st.

Does the Sewage Treatment System Bond Expire?

The bond is required to expire on December 31st, in conjunction with the ending date of the registration period. 

If you purchased the bond on annual terms, Jet will notify you well in advance of 12/31 to renew your bond. All you need to do is submit payment and we will get the new, completed bond form to the Department of Health.

For those paying on monthly terms, there is no process to worry about. So long as the monthly payments are made, Jet will take care of the bond, making sure it remains active.

How Do Installers, Service Providers and Septage Haulers Stay Out of Trouble?

The Ohio Administrative Code 3701-29 details the rules and regulations surrounding household sewage treatment systems. Installers, service providers and septage haulers can take a shortcut and review the information for residential sewage contractors contained on the Department of Health site

Here at Jet, we are sure you have reviewed both sources (we sure have). But, let us sum up how to avoid issues that could eventually end in a bond claim: 

A customer or the Department of Health may bring a complaint against you. A grievance filed by the customer arises from work poorly performed; from the Department of Health, grievances emerge from a violation of the code. The Department of Health may also be acting as an intermediary for complaints against you.

An investigation will follow if the Department of Health deems the complaint warrants a further glance. If a violation is discovered, you may be given a chance to correct the wrongdoing. Repeat offenders may not be granted such forgiveness. 

Failure to correct the violation may result in disciplinary action, including suspension, revocation, fines and a claim against the surety bond.

What Happens if I Get a Sewage Treatment System Bond Claim?

Let us know immediately and we will advise you during the entire process. Jet acts as a financial guarantor for the benefit of Ohio and its residents, but our first obligation is to you and the truth. We will defend you against frivolous claims and government malfeasance. However, if the claim is valid, Jet will make payment to the aggrieved party up to the limit of the bond for the damages caused. 

So, how is a surety bond different from insurance? The surety bond makes payments for parties damaged from fraudulent acts and poor workmanship that was not rectified; essentially, the bond protects others from your actions. Other forms of insurance cover various accidents that arise from the work performed, but will not cover dishonest acts or work not up to code. 

The difference from insurance and a surety bond continues after the claim is paid. With a surety bond the principal (installer, service provider or septage hauler) is required to pay the surety company— in this case, Jet—back. Responsibility for the damages caused remains with the principal and they must provide restitution.

Ohio Sewage Treatment System Contractor Bond Form