Before the Division of Forestry issues a timber sale agreement or contract, the bidder on the contract must provide a Timber Sale Agreement Bond (or Timber Sale Contract Bond) for the guarantee of payment to the State and the protection of State-owned land during and after the timber harvest.
The Division of Forestry is part of the Ohio Department of Natural Resources. Its mission is to protect Ohio’s forest lands and seek sustainable ways to use them. Jet partakes in this goal by offering the Timber Sale Contract Bond that will compensate the Division if the contract holder fails to fulfill the contract.
The rate for this bond has two major contributing factors: the bond limit set by the Division of Forestry Chief and the personal credit of the contract holder. You can check the chart below for starting rates for different bond limits.
With Jet your advantage is working directly with the insurance company. We don’t have any agents or brokers adding fees to the premium rate.
Applying for the Timber Sale Bond with Jet is quick and easy. Our online application will only need basic information, including an agreement number (from the Division of Forestry) and a social security number needed for the soft credit check. Don’t worry, this isn’t like a hard inquiry and won’t affect your credit score.
For bond limits that are under $15,000, you will receive a rate that is ready to purchase right after you finish your application. For limits that are over $15,000, a short review by a Jet underwriter will be conducted; if any additional information is needed, it will be requested at this time. Once a rate has been approved, it will be sent to you via email and is ready to purchase. After payment has been completed, you will receive an emailed copy of the bond and a receipt.
Once you receive the original Timber Sale Agreement Bond, you must submit it at the time of your contract signing to avoid delaying the execution of your contract. If you submit the bond at another time, you must mail it to:
Ohio Department of Natural Resources
Division of Forestry
2045 Morse Rd
Columbus, OH 45601
This bond will stay active during your timber sale contract/agreement. If additional time is needed, you can purchase additional terms to keep the bond active. Once the terms of the contract have been fulfilled, the Division of Forestry will request the release of the bond from the Treasurer of State, where the bond was held. After that, you will be responsible for notifying the surety (Jet) that the bond is no longer needed and to end the bond. An email to firstname.lastname@example.org will work. The first year of the bond is fully earned and not eligible for a refund; if additional time was purchased, Jet will provide a prorated refund of the time left on the bond term.
The Timber Sale Contract Bond is used by the Division of Forestry to ensure that there is funding available to complete a timber sale agreement in the case of the contract holder’s failure. By complying with the agreement and the Ohio Revised Code, Chapter 1503, the holder of the contract can avoid claims on the bond. Common actions that can lead to a claim are:
Should a claim occur, please notify Jet right away. We will walk you through the investigation, collecting information from the State (as claimant) and from you to get to the bottom of the reason for the claim. If there is any way to alleviate the claim, steps to remedy the situation should be taken.
If the claim is found to be valid, Jet will have to pay out the claim to the State. The money from the claim will be added into the state forest fund, which will be used to complete the payment or terms of the contract that you failed to do.
Unlike insurance, the bond is used as protection for the State, not you. Since your actions brought on the claim, you are still required to pay Jet back in the amount that was paid out. Failure to do so will lead to difficulties gaining a surety bond if you wish to proceed in your field.