Utility companies in Ohio may require their customers to file a Utility Deposit Bond. The bond guarantees the payment of bills for gas, electric, or water services provided by the utility company.
With Jet Insurance Company, you can purchase your Utility Deposit Bond knowing that unnecessary fees and delays caused by middlemen are removed from the equation.
The cost of a Utility Deposit Bond with Jet starts at $100, but is dependent on two factors: the amount that is needed for the bond (can be called the bond limit, bond amount or penal sum) and your personal credit. The table shows the rates that may be available for applicants with preferred credit at different bond limits.
|Bond Limit||Annual Cost|
As for the bond limit, the utility company will indicate what amount is needed. Usually, this number is based on the bill for one or multiple months and will be made known to the customer when the bond is required.
Utility companies in Ohio may enforce a Utility Deposit Bond in certain cases where it is deemed extra security is necessary for the utility to receive payment for the utility services they provided. Some of these circumstances include:
You can apply for a Utility Deposit Bond through our streamlined, online application or calling our office at (855) 296-2993. Either way, it only takes a few minutes to fill out the information that is needed: basic business information, the amount of the bond, and a social security number. A soft credit check is required but, don’t worry, it won’t affect your credit like a home or car loan inquiry.
After you have completed the application, one of two things will happen: you will be approved for a rate that can be purchased right away or your application will be reviewed by a Jet team member. A quick review is usually needed when the bond limit is more than $15,000. Once complete, you will find an email with an approved quote so you can purchase your bond.
After payment is made, you will receive a digital copy of your bond and a receipt.
After submitting payment, Jet will prepare your bond form and send it over to you. You are responsible for signing the bond and submitting it (and the attached power of attorney) to the utility company that requires it. Addresses may be found below:
City of Perrysburg
211 E Boundary St
Perrysburg, OH 43551
Columbus Southern Power Company
Attn: Supervisor of Collections
322 Dewalt Ave SW
Canton, OH 44702
Toledo Edison Company
PO Box 3687
Akron, OH 44309-3687
In most cases, Jet will be able to provide a prorated refund on a Utility Bond Deposit that was cancelled before the full term is up. If your bond requirement is lifted, you can request cancellation of your bond by sending Jet an email to email@example.com. The utility company may keep the bond active for another 30 days, or the number of days specified on the bond agreement. After the cancellation is complete, Jet (as the surety company) is released from liability and will provide a refund for the time left on the bond.
The Utility Deposit Bond for the City of Perrysburg cannot be cancelled before the end of the two-year term.
When it is close to the end of your term, Jet will send you a notice for renewal. If you are still in need of this bond, simply fill out the renewal notice and send it back; or, click the link in the emailed notice.
If the utility company no longer requires that you hold a bond, you can either let us know or fail to renew your bond. Your bond will expire at the end of your term.
These bonds are used by utility companies as a backup plan for payment if their customers don’t pay their bills. The purpose of the bonds are listed below.
As long as payment is received for services provided, the utility company should not have a reason to lay claim on the bond to be compensated. If payment is missed or not paid in full, there is usually an allotment of time to complete the payment; for example, the City of Perrysburg must receive completed payment within 180 days of the due date. After the payment is considered a “default”, the utility company will send a demand of payment. Failure to fulfill the payment within 10–30 days (as specified on the bond agreement) will result in the utility company seeking restitution from the bond.
Should you receive a claim filing against your Utility Deposit Bond, let Jet know as soon as possible. We hope to defend you against any false allegations, but in a matter of nonpayment, it is impossible to disprove the claim if the defendant didn’t pay their bill. You should be honest and responsive in your communication, providing any evidence in your defense.
Jet will be obligated to comply with general claims handling procedures indicated in Section 3901-1 of the Ohio Administrative Code. Within 15 days, any documentation needed for the investigation will be provided to the utility company (as they are the claimant) by Jet. Once an adequate proof-of-loss form has been received, Jet must reach a decision on whether the claim is valid.
If it is valid, Jet must pay the utility company in the amount of the claim. However, you don’t get off scot-free in the case of a claim. A bond is not like insurance, which covers accidents and the like. A surety bond protects others from your actions; therefore, since your actions brought on the claim, you must pay Jet back in the amount of the payout. Failure to do so will lead to difficulties in obtaining another surety bond and subsequently, having access to utility services.