Indiana Career & Technical School Institutional Bond Guide
Non-degree granting, postsecondary private educational providers in Indiana need to file a surety bond as part of the licensing process.
Learn how these bonds work and get a free quote with our comprehensive guide.
Bond Overview
- Purpose: To guarantee compliance with state regulations and protect students
- Who Needs It: Non-degree granting career and technical schools in Indiana
- Regulating Body: The Department of Workforce Development
- Required Amount: $25,000
- Premium Rates: Credit-based, starting at $250
What Is an Indiana Career or Technical School Institutional Surety Bond?
An Indiana institutional surety bond, also known as a private school bond or career and technical school bond, ensures schools follow state regulations.
The surety bond protects the state, students and tuition-payers from any financial losses caused by an educational provider’s noncompliance.
How Much Do Institutional Surety Bonds Cost in Indiana?
All Indiana private career and technical schools need a $25,000 institutional surety bond for initial licensing. Premium rates start as low as $250 for applicants with good credit.
Apply now to get your free, personalized quote.
If your expected annual gross tuition charges exceed $250,000, you’ll need to increase to a $50,000 bond at renewal. Call us at 1 (800) 308-4358 for assistance.
How Does an Indiana Career or Technical School Bond Work?
An Indiana career school institutional surety bond binds three parties in a legal contract:
- Principal: The private educational institution filing the bond
- Obligee: The Indiana Department of Workforce Development requiring the bond
- Surety: The provider issuing the bond
If the school breaks the bond terms and causes harm, the state or students can file bond claims. The surety will pay claims up to the $25,000 bond amount.
However, the school is ultimately responsible for repaying the surety.
Who Needs a Private Career School Bond?
Per Indiana Code 22-4.1-21 Chapter 21., all postsecondary proprietary educational institutions must file an institutional surety bond.
A postsecondary proprietary educational institution refers to any privately-funded business offering instruction or training for technical, professional, mechanical, or industrial occupations that is:
- Non-credit bearing
- Non-degree granting
- Not publicly funded
- Not accredited by another state regulatory body than the Department of Workforce Development
This typically includes trade schools, career training schools and industry-specific certification programs.
How Do I Get an Institutional Surety Bond in Indiana?
SuretyBonds.com provides the fastest and easiest way to get a private career or technical school bond. Just follow these three steps:
- Submit a quote request
- Sign the indemnity agreement (all owners)
- Pay the online invoice
We’ll email you the official bond form after purchase. Sign and file this with the Department of Workforce Development as part of the licensing process.
How Fast Can I Get My Bond?
We process most Indiana private school institutional surety bonds within one business day. Submit a quote request to get started now.
How Do I Renew My Bond?
Private career and technical education institution surety bonds expire annually. We’ll contact you starting 90 days before the expiration date to ensure you maintain active coverage.
Pay the invoice and complete any documentation for your new bond when prompted. Remember to sign and submit the new bond form with the Department.
How to Become an Authorized Career or Technical School in Indiana
The Indiana Department of Workforce Development’s Office for Career and Technical Schools (OCTS) regulates all non-credit bearing, non-degree granting postsecondary proprietary schools.
You’ll need to attach the following supporting documents in the online application portal:
- Document listing all faculty and administrative personnel
- Proof of institutional surety bond
- Copy of tuition report (Form 49926)
- Personal income statement and balance sheet
- Copy of student complaint process
- Copy of student code of conduct
- Copy of refund policy
- Copy of institutional catalog or brochure
- Copy of enrollment agreement
- Student record requirements
- Articles of Incorporation or Certificate of Authority
- Proof of $1M liability insurance covering the institution and students
After gathering all required documents, follow these steps to become an authorized career or technical school:
- Complete the Determination of Status Questionnaire
- Take the New Institution Orientation and submit the verification page
- Wait for verification to proceed from OCTS
- Submit the initial application form and pay fee
Once you are authorized, you’ll need to resubmit the annual application form to maintain compliance and update the OCTS with any changes at your institution.
