Utah Proprietary School Bonds
Utah postsecondary proprietary schools must be bonded with the state. Learn how the bonding process works for schools with this guide.
Bond Overview
- Purpose: To guarantee schools follow state laws and protect prepaid tuition funds
- Who Needs It: Utah postsecondary proprietary schools and agents
- Regulating Body: The Utah Department of Commerce — Division of Consumer Protection
- Required Amount: $1,000–$500,000
- Premium Rates: Typically 1–3%, credit-based
What Are Utah Proprietary School Bonds?
Utah postsecondary proprietary school bonds ensure that schools operate legally and ethically, protecting the public from illegal actions and financial loss. These surety bonds are required to license a school with the Utah Division of Consumer Protection.
How Much Bond Coverage Do I Need?
Your required proprietary school bond amount depends on the gross tuition revenue collected annually. Reference the table below to confirm your bond coverage.
| Bond Amount Based on Gross Tuition | |
|---|---|
| $0–$50,000 | $12,500 bond |
| $50,000.01–$100,000.00 | $25,000 bond |
| $100,000.01–$200,000.00 | $50,000 bond |
| $200,000.01–$300,000.00 | $75,000 bond |
| $300,000.01–$400,000.00 | $100,000 bond |
| $400,000.01–$500,000.00 | $125,000 bond |
| $50,000.01–$100,000.00 | $250,000 bond |
| $1,000,000.01–$2,000,000.00 | $500,000 bond |
| $2,000,000.01–$5,000,000.00 | $1,250,000 bond |
| $5,000,000.01–$10,000,000.00 | $2,500,000 bond |
How Much Do Proprietary School Bonds Cost in Utah?
Utah postsecondary proprietary school bond prices typically range from 0.75% to 10% of the total bond amount.
Your exact premium will be personalized based on underwriting review. For example, a $10,000 bond starts at just $75 for applicants with excellent credit. Apply for your free bond quote now.
SuretyBonds.com offers the lowest rates available from our nationwide network of surety providers with no added fees.
How Does a Utah Proprietary School Bond Work?
By purchasing this bond, you enter a legally-binding contract between three parties:
- Principal: You, the proprietary school owner purchasing the bond
- Obligee: The Utah Division of Consumer Protection requiring the bond
- Surety: The provider issuing the bond
These bonds protect students and tuition-payers if a school goes out of business or violates licensing rules. If your school fails to uphold the bond terms, harmed particles can file claims against the bond. The surety will pay out valid claims which you must reimburse.
Who Needs a Proprietary School Bond?
To prove financial viability, proprietary schools must provide one of the following security options:
- Surety bond
- Certificate of deposit (CD)
- Irrevocable letter of credit
Surety bonds are often the most affordable, efficient and effective choice for meeting this requirement. Learn more about surety bonds versus letters of credit here.
What Qualifies as a Proprietary School?
The following types of education providers are considered proprietary schools in Utah:
- Private, post-secondary institutions, including for-profit entities
- Not public, charter, or traditional private schools
- Vocational, technical training or career-specific preparation
Any owner or operator of a private school applying for a Utah business license must file a proprietary school bond.
How Do I Get a Proprietary School Bond in Utah?
SuretyBonds.com provides the fastest and easiest way to get a proprietary school bond. To get started, follow these simple steps:
- Apply: Fill out the quick, online application form
- Receive Quote: Receive your free bond quote within one business day or less
- Purchase: Checkout on our secure online portal
We’ll email your official bond form immediately after processing — typically same-day! Sign and file the documentation with the Division to become officially bonded.
Can I Get Bonded With Bad Credit?
Yes, you may be able to get a postsecondary proprietary school bond even with bad credit. However, keep in mind that this may lead to a higher premium. When you apply, we will explore our nationwide markets to find the best available rate for you.
How to Renew Your Proprietary School Bond
You must renew your Utah postsecondary proprietary school bond before the current one-year term ends. To remain active for another term, you’ll need to pay your invoice and file a continuation certificate with the Division.
A SuretyBonds.com account representative will notify you during the renewal period and provide further instructions. Check out our How to Renew Your Surety Bond page for more information.
How to Open a Proprietary School in Utah
Under the Utah Postsecondary School and State Authorization Act, all non-exempt postsecondary schools must register with the Division of Consumer Protection. To register your school, follow these steps to apply:
- File Bond: Purchase and submit a proprietary school bond.
- Submit Application: Apply and pay the $1350 licensing fees.
- Meet Requirements: Ensure your school has adequate facilities, qualified faculty, and programs that meet student learning objectives.
Once everything is approved, your school can begin operations and start enrolling students.
